Student Loans & Financial Crisis

The following was an exchange on Yahoo Groups-TransferApps

Q: I'm wondering if, because of the financial crisis, my aid could be revoked for transfering to a different school. I got approved for a grad plus loan no problem, and I'm certainly willing to keep the same lender. I was just wondering if anyone has heard of any unusual problems (like having to change lenders when they transferred) that people may have had in retaining their aid once they transferred.

A: Yes. I think that's a possibility. I had no problem getting my grad plus loan in the summer of 2007. I had some blemishes on my credit score but I was creditworthy. When I thansferred this summer, even though my credit was no worse than before and in fact my credit card debt was less than it had been a year before, I had trouble getting approved for my loan and had to get a cosigner. This was before the meltdown but obviously after a year of subprime morgage crisis. When I asked my lender why it was more difficult for me to get a loan this year than last, they said that their requirements had changed. My loan for my old school had already been approved and was awaiting disbursement before I transferred. So yes, you can have financial aid headaches when you transfer.