Will my daughter receive the $5K excess FAFSA aid after tuition is paid? Need it for future dorm costs

Yes, she should receive the excess funds as a refund! The school will first apply all financial aid to her account to cover tuition and any other direct costs. Any amount over that is typically refunded to either the student or parent (depending on whose name is on the account). Most schools either direct deposit it or mail a check within 2-3 weeks after classes start and all aid has been applied. Just make sure you've set up the refund preference in the school's financial portal. There's usually a section for "refund preferences" or similar where you can choose direct deposit (fastest) or check.

Is anyone gonna point out that scholarships/grants might have specific terms?? Some can only be used for tuition OR housing. If she's not using it for housing this year they might reduce the award!! You really need to read the fine print for each award before assuming you can just bank that money.

my daughter had this same situation last yr!! we got about 4k back after her tuition was paid. took almost a month after classes started tho and they never told us it was coming, just showed up in her bank account one day lol

I work in financial aid (not at your daughter's school obviously) and this is a common question. Generally speaking, yes, excess financial aid is refunded to the student. BUT - big caveat - each type of aid has different rules about whether it can be reduced if not using for intended purpose. Federal aid has the most flexibility (Pell, SEOG, federal loans). School-specific scholarships often have more restrictions (some are tuition-specific, some require on-campus housing, etc).

I've been trying for WEEKS to get someone on the phone at my daughter's financial aid office with a similar question. It's absolutely maddening! Have you tried calling early in the morning? That's what someone advised me but I still can't get through.

ur supposed to use that money 4 educational expenses only, just fyi. they don't really track it once it's refunded but technically ur not supposed to just save it for later. it's for this years books/supplies/transportation etc.

Another thing to consider: if your daughter is getting substantial merit scholarships from the university, check if they're renewable and what the GPA requirements are for renewal. Sometimes students lose scholarship eligibility in subsequent years if their GPA falls below requirements. So even if you can bank that $5K for next year, don't count on the same total aid package necessarily being available unless all the current scholarships are guaranteed for all 4 years.

This whole financial aid system is RIDICULOUS!! You shouldn't have to struggle this much just to understand how your own money works! The schools are raking in billions and can't even answer a simple phone call or make their policies clear. This is why so many families end up in debt - the system is DESIGNED to be confusing!

One last thing to consider - when you do get the refund, I recommend opening a separate savings account just for these education funds rather than mixing them with regular accounts. This helps in case there are ever questions about how the money was used, and helps your daughter budget those funds specifically for educational expenses.

Just want to add one more consideration - timing can be crucial if you're planning to use that refund for sophomore year housing. Most schools require housing deposits and room selection to happen in the spring semester of freshman year (like February-April). So even though you'll get the refund, make sure you have a plan for covering the housing deposit upfront since the refund money might not be available yet when you need to secure her dorm spot for sophomore year. You might need to pay the deposit out of pocket and then reimburse yourself when the refund comes through.

I went through this exact situation with my son two years ago! Yes, you should definitely receive that $5K as a refund, but here's what I wish someone had told me: the timing varies wildly between schools. Some process refunds within days of the semester starting, others take 4-6 weeks. My advice: call the bursar's office (not financial aid) - they handle the actual refund processing and are often easier to reach. Also, ask specifically about their refund timeline so you can plan accordingly. We ended up getting about $3,800 back after all was said and done, and it was a huge help for textbooks and other expenses we hadn't budgeted for. One thing that caught us off guard - they deducted some mandatory fees we didn't expect from the "excess" before issuing the refund, so don't be surprised if the final amount is slightly less than your calculation!

As someone who just went through this process with my youngest daughter last semester, I can confirm you should receive that excess as a refund! A few practical tips from our experience: First, definitely set up direct deposit in the student portal ASAP - it's so much faster than waiting for a mailed check. Second, the refund usually happens about 10-14 days after the add/drop period ends, not right when classes start. One thing that really helped us was creating a simple spreadsheet tracking each funding source and its specific terms. We discovered one of her smaller scholarships ($2K) actually required on-campus housing to maintain eligibility, so we had to decide whether to forfeit that or find a way to cover dorm costs. Ultimately we kept her home and lost that particular scholarship, but the math still worked out better for us. The $5K you're banking on for sophomore year housing is smart planning, but definitely confirm each award's renewal requirements now while you have time to plan. Good luck!

I'm new to all this financial aid stuff too and your post really resonates with me! My son will be starting college next year and I've been trying to wrap my head around how all these refunds and excess aid works. Reading through everyone's responses here has been incredibly educational - especially learning about the bursar's office vs financial aid office distinction, and the importance of checking individual scholarship terms. One question for those who have been through this - do schools typically send any kind of notification when they process the refund, or does the money just show up in your account without warning? I'm the type of person who likes to know what's coming when, so I don't want to be checking my bank account obsessively wondering if/when it will arrive! Also, has anyone had experience with what happens if your student's enrollment status changes (like dropping from full-time to part-time) after aid has been disbursed? I'm probably overthinking this, but I want to understand all the potential scenarios.