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Edited By: Scholarships for Transfer Students
Key takeaways:
- Millions of students transfer schools every year. The National Student Clearinghouse Research Center reported that in fall 2023, 13.2% of all continuing and returning undergraduates transferred to a new institution, reflecting a 5.3% increase from the previous year.
- Programs like the Cooke Undergraduate Transfer Scholarship specifically target community college students transferring to four-year institutions.
- Some scholarships, like the JWU Transfer Scholarship, are renewable for multiple years, provided the recipient maintains eligibility.
Every year, millions of students switch schools. Maybe they have decided to major in something that their current school doesn’t offer. Perhaps they discovered the social and dormitory situation just isn't a good fit and/or they are homesick and just want to be closer to family.
No matter what your reason is for transferring, you should understand the potential challenges involved when you begin the process of transferring credit hours, as well as what may happen to your financial aid.
As a student preparing to transfer, you may assume that financial aid automatically moves with you. Unfortunately, it does not. In fact, you may be at risk of losing some awards. That said, there may also be some transfer scholarships you qualify for that can replace some of those lost in the transfer process. Keep reading to understand how financial aid works if you’re a transfer student.
What happens to my financial aid if I transfer schools?
If you decide to transfer schools, the first thing you should do is to make sure your new school has a copy of your FAFSA results. The FAFSA (Free Application for Financial Student Aid) is the required form that schools use to decide how much financial aid you qualify for. Without the form, the school won’t be able to approve you for federal, state or even internal awards.
However, not all schools are eligible for federal financial aid. If your new school doesn’t qualify for federal financial aid, then you’ll have to find another way to pay for it. Here’s how financial aid works if you transfer schools.
Student Loans
You’ll still be eligible for federal student loans if you transfer. However, federal student loans have a limit for undergraduate students. The annual limit is between $5,500 and $12,500, depending on your year in school and whether you’re an independent or dependent student.
The aggregate loan limit is either $31,000 for dependent students or $57,500 for independent students. Once you hit that limit, you won’t be eligible for more student loans.
This can result in some problems if you transfer and use up your student loan funding before you graduate. If you run out of federal student loans, you’ll have to take out private student loans, have your parents take out student loans or find another way to handle the funding gap.
Federal Grants
You may still qualify for federal grants if you transfer. However, some grants, like federal student loans, do have a limit on how many times you can receive them.
For example, the Pell Grant is only given for 12 semesters. If you end up attending school for more semesters, you won’t be able to receive the Pell Grant after the 12th semester.
State Grants
Most state grants require that you attend school in the state offering the grant. Also, some are only given to students who are attending a public in-state university. If you transfer to a private university, you may qualify for fewer state awards.
Scholarships
You may still be eligible for recurring scholarships if you transfer to a new school. You’ll have to contact the scholarship coordinator and ask them if the award can be used at your new school.
Their response partially depends on the individual scholarship’s requirements. For example, if the scholarship requires that you attend school in a certain state and your new school isn’t located in that state, then your scholarship will likely be revoked.
Work-study
Work-study is a type of financial aid where you work at your school or with an associated organization. You receive a regular paycheck and usually work between 10 and 15 hours a week.
Work-study spots are limited so if you transfer halfway through the year, you may not receive a work-study job for spring semester.
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What to do if you’re transferring to a new school
If you're switching schools, you should complete the following steps to maximize your new financial aid opportunities.
Officially withdraw
The first part of the transfer process is to notify your school that you intend to transfer elsewhere. If you’re transferring between semesters, you may have to give back some of the financial aid that is prorated annually. Make sure to formally withdraw, not just drop out. Otherwise there may be unintended consequences that could be hard to fix.
Contact your new school
Financial aid does not move with you automatically. You will have to apply for financial aid the same way you did before. Reach out to the financial aid department of your new school and ask them what your next steps should be to ensure you will receive as much financial aid as possible.
You should also ask them how to apply for any internal grants and scholarships. You may have to complete a separate application form, in addition to the general application form.
Apply for transfer scholarships
There are some scholarships designed for students who have transferred to a new school. You can look for these directly in the Scholarships.com Directory. Also, your new school may provide special scholarships for transfer students.
Understand your new total cost
When you apply to a new school, you should receive a financial aid award letter that states your total cost of attending. If the amount is higher than for your current school, you would be wise to resume/continue your search for scholarships and grants to help bridge the gap.
Parents can also take out Parent PLUS loans, which are federal loans only for the parents of undergraduate students. The annual limit is the cost of attendance minus all other financial aid, so it can effectively cover all your needs.
These loans will stay in your parent’s name, even after you graduate. Parent PLUS loans have fewer repayment and forgiveness options than regular student loans.
You can also take out private student loans, but these offer fewer benefits and protections than federal student loans. Only consider them as a last resort. Private student loans also usually have higher interest rates than federal student loans. You’ll also usually need to get a cosigner. If a private loan does not require a cosigner, then the interest rate will likely be even higher than normal.
The bottom line
Transferring to a new school can be a challenge. However, just think about all the other students who successfully do it every year. The best rule of thumb is to contact the financial aid department if you have any questions and get everything in writing. That will help you in case discrepancies crop up later.