Every month HESC’s “Question and Answer” web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s question is:

If a loan is guaranteed for the annual loan limit for attendance at school A during the fall/spring school year but the student transfers to school B between semesters, can the initial guarantee still be used to allow for the spring disbursement to be made at the new school?

No. Loans guaranteed for attendance at a particular school cannot be carried over to a different school if a student transfers. The spring disbursement guaranteed for attendance at school A would have to be cancelled and a new loan would need to be certified by school B for the remaining annual eligibility.

Questions regarding this guidance should be directed to the Office of Counsel and Regulatory Compliance at 518- 473-3986, or toll-free at 1-866-431-HESC (1-866-431-4372, press 6, or askpolicy@hesc.org.