Changing schools can be the right move for many reasons. You might find a less expensive college, move closer to home, switch career paths, or discover a vocational program that better matches your goals.
But transferring can also change your financial aid.
One common misunderstanding is that a financial aid offer simply follows a student from one school to another. In reality, different colleges can calculate aid offers differently, and some types of assistance may not transfer at all.
The good news is that you generally do not have to start your FAFSA from the beginning just because you change schools. However, you may need to update your FAFSA information and work with both schools to make sure your aid is handled correctly.
Understanding the process before transferring can help you compare your options and avoid unexpected education costs.
1. Your FAFSA Can Be Sent to a New School
The Free Application for Federal Student Aid (FAFSA) is used to determine eligibility for federal student aid. States and colleges may also use FAFSA information when considering students for certain aid programs.
If you decide to transfer, the new school needs access to your FAFSA information before it can determine what financial aid you may be eligible to receive there.
Students can generally add or remove schools from their FAFSA through their StudentAid.gov account. Make sure you select the correct institution because schools can have similar names or multiple locations.
After adding a new school, allow time for the institution to receive and process your information.
You should also contact the new school's financial aid office. Ask whether the school needs any additional documents and when you can expect to receive a financial aid offer.
Updating your FAFSA does not automatically guarantee that the new school's offer will match your previous school's offer.
2. Your Financial Aid Offer May Change
The amount you pay at one college can be very different from what you pay at another.
Schools have different tuition rates, fees, housing costs, and other expenses. They can also have different amounts of institutional grants and scholarships available.
Your federal student aid eligibility may be affected by factors including your financial circumstances, enrollment status, the school's cost of attendance, and the amount of other financial assistance you receive.
For example, a student transferring from a four-year university to a community college might face a lower cost of attendance. That change could affect the student's overall financial aid package. Institutional aid can be especially important to investigate.
A scholarship or grant provided directly by your current college may not follow you to another institution. Your new school might offer its own assistance, but the eligibility requirements and amounts could be different.
Before making a transfer decision, compare the actual financial aid offer from the new school rather than assuming your existing assistance will continue.
3. Grants and Federal Student Loans Have Their Own Rules
Some federal aid may be available at a new eligible school, but annual and lifetime limits still matter.
For eligible undergraduate students, the Federal Pell Grant can help pay education costs. Transferring does not reset the amount of Pell Grant funding a student has already received. Federal student loans work in a similar way when it comes to borrowing limits.
If you borrowed federal student loans at your previous school during the same academic year, that borrowing counts when determining how much additional federal loan funding may be available at the new school.
You cannot simply transfer to another institution and restart your annual federal loan limit.
Federal student loans also have aggregate limits that restrict how much eligible students can borrow over time.
Students can review their federal student aid history through their StudentAid.gov account. The new school's financial aid office can explain how previous aid affects the amount that may be available for the remainder of the academic year.
This is particularly important for students who transfer in the middle of an academic year.
4. Timing Your Transfer Can Make a Difference
When you change schools can affect how complicated the financial aid process becomes.
Transferring between academic years may be simpler than leaving one institution and beginning at another during the same award year. A midyear transfer can require schools to determine how much federal aid has already been used and what, if anything, remains available.
Your enrollment dates can also matter.
If you withdraw from your current school before completing the term, the school may be required to determine how much federal student aid you earned based on federal rules. In some situations, part of the aid may need to be returned.
That could leave a balance owed to the school.
Before withdrawing, contact your current school's financial aid office and ask how leaving at that point in the term could affect your account.
You should also speak with the new school's financial aid office before enrolling. Ask when aid can be processed and whether there could be a gap between the time tuition is due and the time your financial aid becomes available.
Planning ahead can help you understand the possible costs before you officially leave your current institution.
5. Check Credits, Aid, and Costs Before You Transfer
Financial aid should be only one part of your transfer decision.
Academic credits matter too. If the new college does not accept some of your completed courses, you could need additional classes to finish your degree or certificate. More classes can mean additional tuition, fees, supplies, and time in school.
Ask the new institution for information about how your previous credits will apply to your intended program.
Then compare the full cost of attending each school.
Questions worth asking include:
- Which of my existing credits will transfer?
- How many credits will I still need to graduate?
- Has the school received my FAFSA information?
- What federal grants may I be eligible to receive?
- How much federal student loan eligibility remains?
- Will my existing scholarships transfer?
- Does the new school offer transfer scholarships or grants?
- Are there separate state aid requirements?
- What is my estimated cost after grants and scholarships?
- When will financial aid be available?
If you receive a scholarship from a private organization, contact that organization as well. Some outside scholarships can be used at different eligible schools, while others have restrictions.
Changing schools can open the door to a program that better fits your career plans, budget, or personal responsibilities. But the financial details deserve attention before you make the move.
Update your FAFSA when necessary, communicate with both financial aid offices, review your federal aid history, and compare the new school's financial aid offer carefully. Also find out exactly how many of your completed credits will count toward your new program.
A lower tuition price does not always mean a lower total cost if transferring adds extra semesters or causes you to lose grants, scholarships, or credits.
Before committing to a new school, look at the complete picture: how much aid you can receive, how much you may have to pay, and how long it could take to complete your education.