A question about college reimbursements.

[cssmall]

My wife and I are both college students and trying to get through the summer and it is now August. The college that we attend has been send out grants and loans all ready, yet they say they will not disburse the money until Friday. I know that the money is an an interest drawing account; however, I also know how much I owe them. Is it not money laundering when you're earning interest off someone else's money? I mean, I understand that I have a debt to them until my money reaches their hands and my loan company has all ready sent them the money. According to my own sense of business (and perhaps naivety), I believe that when one receives the money, they take the payment and reimburse me for the rest. Is there anything I can do?

[Nikia]

1. You mean that they actually give you money?

I got loans, grants, and scholarships but they sent directly to the college and directly applied to my account. There was some kind of of misunderstanding with my account for my first term because one of the scholarships sent their payment to the school late. As a result, I had already paid more than I should have. I didn't ask for reimbursement. I just let them apply that money to my next term, which meant that I didn't have to pay anything for the rest of the year. I could have gotten reimbursed, but I chose not to because I knew that money was needed for that purpose anyway and did not make nearly as much money during the school year as during the summer. It also helped me for financial aid because I didn't have to report that money, which would have been in my savings account instead.
There were allegedly a couple of students at my school that got more financial aid than they needed because they chose to live at home instead of the dorms after their need was calculated with the dorm cost. I don't know when they were given their money and if they were supposed to use it for certain purposes. Is that what you are talking about?

[GaYellowDawg]

2. Here's what I've heard...

I've been told that federal law prohibits disbursement of funds from student loans prior to 10 days before first day of classes. I understand the pinch; classes here start the 18th and I've got less than $2 in the bank account with bills and rent due. I'm really looking forward to this check!!

[pitohui]

3. it isn't money laundering

money laundering is making $$$ gained from criminal enterprise appear to be receipts from a legal activity

earning interest off someone else's money isn't money laundering, it is just smart, all colleges disburse $$$ as late as possible because many students drop out and some never even attend a single class, giving out $$$ in advance was a great way to finance drug addicts back in the 70s but did nothing to advance the cause of higher education