Key takeaways
- If you transfer colleges, you may receive a different amount in financial aid, depending on the aid’s source and the school’s COA.
- For a smoother transfer, complete the FAFSA, notify your school’s financial aid department, and contact any aid sources to update your college information.
- If your new financial aid package isn’t enough, you may need to consider other schools, take out additional loans, or get a part-time job.
According to the National Student Clearinghouse, over 1 million undergraduate students transfer schools annually. Students discover they don’t enjoy their current school, they want to pursue a different major, or the cost is too high – which leads to the next question: “what happens to my financial aid if I decide to transfer?” Your current aid package won’t necessarily travel with you but there are ways to maximize your offer and potentially keep college costs low.
What happens to my financial aid if I decide to transfer?
When you transfer to a new college, your financial aid package won’t automatically transfer with you. Instead, you’ll receive an updated package from your new school. The offer could be vastly different from your previous package, depending on the source of the financial aid, your school’s cost of attendance (COA), and your location. For outside aid sources, you need to notify the organization of the change and verify your continued eligibility.
Here’s a closer look at each factor so you can create a plan to pay for college.
Will I still receive institutional aid if I transfer colleges?
Institutional aid, or grants and scholarships specifically from the college, does not transfer with you to your new school. Colleges and universities have different endowment programs, with some schools offering more per student on average than others. Any institutional aid offer you receive is unique to that one school.
Your transfer college determines your new financial aid offer, which can include institutional, state, and federal aid. Their formulas for allocating funds may be different from your previous school, which means you could end up with more or less money for your education.
In addition, a school’s COA affects your financial aid package. In most cases, you can only receive up to the advertised COA. If your previous college had a higher COA, your previous offer may have been higher to cover that gap.
Keep in mind that while many schools in the United States use the Free Application for Federal Student Aid (FAFSA) to determine aid packages, some require you to complete the CSS Profile or school-specific application instead.
Comparing financial aid offers from your current college and potential new schools can help you see the difference in aid before you transfer.
How does transferring affect federal financial aid?
Federal financial aid does not automatically transfer. You need to complete or edit the FAFSA, list your new college on the form, and your new school determines how much federal aid you’re eligible for. Your federal package may be different from your previous offer, depending on your location, school, and COA.
Attending a lower-cost school could mean you receive fewer student loans or less of the Pell Grant, and vice versa. You may be eligible for work-study at one school but not the other – in fact, not all colleges participate in the work-study program. In addition, a different COA can impact how much your parents can borrow with a Parent PLUS Loan.
Federal student loans also enter repayment six months after you leave college. Since you’re transferring, you’re “leaving” college. To avoid having to make payments immediately, apply for an in-school deferment.
Does transferring affect my private student aid?
Yes, transferring colleges can affect your private student aid. Private lenders, including banks and credit unions, determine loans based on your credit worthiness and school’s COA minus any financial aid you’re already receiving. If the COA or financial aid package changes, the amount you’re eligible for can change.
Unless you applied for and received a multi-year student loan, you need to apply for private loans each year. If you decide to transfer, notify your lender of the change as soon as possible so they can advise you on the next steps.
If I transfer, will I lose my grants and scholarships?
Some types of grants and scholarships will transfer to your new school, but it depends on the source and their terms and conditions. You could receive a different amount or lose eligibility entirely.
A few examples of common scholarship and grant requirements include:
- Living and/or attending college within a certain community, state, or part of the country
- Attending a specific school
- Enrolling in a pre-determined major
- Pursuing a set career path
- Attending a certain type of school, such as public or private
If any of these change when you transfer to a new school, you could lose eligibility.
For example, almost all state grant programs require students to live and/or attend a college within the same state. If you’re moving or transferring out of state, you lose eligibility for the program and the grant won’t travel with you. In addition, many state programs favor public schools over private. Switching from a public college to a private institution could lower the amount you’re eligible for, even if it’s within the same state.
Before you transfer, read over the terms and conditions of any state or gift aid you’re receiving, following their instructions for your next steps.
How to qualify for financial aid when transferring to a new college
To qualify for financial aid after a college transfer, you need to:
- Complete the FAFSA. Submit your FAFSA as soon as possible after October 1. The sooner you apply, the more aid you may be eligible to receive. Funding is often limited, and it can run out. If you’re transferring mid-year, you need to edit your FAFSA to add the new school. Check your college’s financial requirements, too – they may require the CSS profile or another application for aid.
- Apply for other scholarships and grants. Gift aid isn’t just for incoming college students – there are awards for upperclassmen, graduates, and doctoral students. You may be eligible for new scholarships or grants by transferring, and winning even one could help close the gap between what you have and what you need.
- Notify your current financial aid office. Talk to the department about your transfer decision as soon as possible so they can help with the next steps. Make sure your account is fully settled. You may not be able to receive your transcript if you haven’t paid off your entire bill.
- Talk to your new financial aid office. Ask any questions you have about your financial aid package and award eligibility. Discuss transferring your existing financial aid to your new program.
- Contact scholarship and grant programs. If you’re receiving any grants or scholarships, notify the agency or organization of the change so they send the money to the correct place.
- Talk to your lender. Most private student loans are sent directly to the college. If you have any private loans, let the lender know you’re transferring schools so the money is sent to the correct place.
Transferring colleges with financial aid FAQ
Here are a few more questions we see when it comes to transferring and paying for a new college.
When should I transfer to maximize financial aid?
To maximize financial aid, aim to transfer at the start of the academic year. Most schools, agencies, and organizations have released their funds for the entire year at the beginning of each academic year. Students who transfer between the fall and spring semesters may be offered smaller financial aid packages, simply because the funds aren’t there.
Can my location affect my financial aid package?
Yes, your location can affect your financial aid package. For example, you can typically only receive state grants if you live in and/or attend school within that state. If you move or transfer schools, you may no longer be eligible for the money.
Some scholarships are also only available for students within a specific city, county, state, or part of the country.
Transferring to an area with a lower cost of living can help you save money, as you’ll spend less on housing, food, and other necessities.
When should I submit my transfer application to maximize financial aid?
Submit your college application to your new college as soon as possible to maximize financial aid. While schools tend to have much later transfer application deadlines, priority scholarship, state grant, and FAFSA deadlines are often earlier in the admissions cycle. Applying early could put you in the running for these awards and additional aid before it runs out.
What if my financial aid won’t transfer with me?
If your financial aid won’t transfer with you and you’re not eligible for enough aid to cover your new COA, rethink your plan. You may need to stay at your current school, apply to a different college for a new aid offer, take out more loans, get a part-time job, ask for donations to your education, or talk to your parents about a Parent PLUS Loan. Some colleges also let you appeal financial aid decisions.
If you’re set on leaving your current college and need financial aid to afford your education, apply to several schools. They should each send you a financial aid offer letter, which you can compare to determine the best deal for your wallet. If you already have the offers in hand, we can help you make sense of the confusing formats – check out our Financial Aid Offer Comparison Tool to learn more about the schools’ COAs, estimated debt after graduation, and more.
