Consumer complaint received 2022-12-08
Product: Student loan — Private student loan
Issue: Getting a loan — Denied loan
Company: DISCOVER BANK (LA)

On XX/XX/XXXX, I received an email from my XXXX XXXX XXXX XXXX asking if I exercised all of my federal financial aid options before he proceeds to certify my private discover loan for {$60000.00}. I advised XXXX that I would like to proceed with using my private loan, and XXXX replied that he will be certifying that amount with Discover student loans. On XX/XX/XXXX, Discover student loans disbursed {$30000.00} to the XXXX XXXX XXXX financial aid office. After my tuition and fees posted to my student account there was a remaining credit of {$10000.00} on my account. On XX/XX/XXXX, {$7500.00} was direct deposited into my account, which is the standard living calculation based on the schools website for the average student. I reached out to the financial aid advisor XXXX XXXX along with another staff member from the college of law, where XXXX XXXX confirmed over the phone that I was set to receive the excess loan funds of {$10000.00}. On XX/XX/XXXX, I was copied on an email from XXXX XXXX explaining I only received {$7500.00} because that it is all that remained of my discover student loan money in the amount of {$30000.00} and they only thing that would effect that amount would be adding any dependents and changes to my FAFSA. On XX/XX/XXXX, I visited the financial aid office to speak with XXXX XXXX. I explained to XXXX that my loan is listed as an award, and that they were following the rules for federal direct loans or institutional loans/awards or awarded federal or institutional funds instead. XXXX could not provide any resolutions for that matter. XXXX explained that the government set limits for the cost of attendance, and I explained that discover pays 100 % of my costs for school, and the other guy in the office came up to the desk saying that you can only borrow so much because you can't profit off of going to school. The guy stated that we have limits set for that and that limit is {$60000.00}. I explained that the school certified {$60000.00} of the discover funds that I requested, and the funds I need for living expenses are within that amount. I also explained that my budget limitations are set as if I am an XXXX  resident however, I am from XXXX  and a flight home is {$1000.00} at minimum. The guy in the office asked XXXX how much of my loans are through FAFSA or through the school, he told him that the only thing I had of that sort was a tuition waiver. The guy then directed me to contact XXXX XXXX , the associate director of financial aid. I emailed her to set up an appointment and XXXX XXXX placed an escalation on my account and advised me to submit a budget appeal. On XX/XX/XXXX, I went to the financial aid office and spoke with XXXX XXXX. XXXX reviewed my apartment lease, my one-way flight receipt, and my class seat deposit receipt of {$500.00}, and she increased my student budget by {$3400.00}. XXXX confirmed that the excess funds in the amount of {$6600.00} would be credited back to Discover student loans. On XX/XX/XXXX the increased amount of {$3400.00} was direct deposited to my account based on the budget appeal I submitted with XXXX. On XX/XX/XXXX, I called the financial aid office to confirm with XXXX if the remaining funds of {$6600.00} was returned to Discover student loans and XXXX stated that she did not see the amount of {$6600.00} on my account and that she can not confirm where the funds were located. XXXX then directed me to speak with XXXX XXXX in student accounts because she would be able to see exactly where those funds were allocated to. I further questioned XXXX about my budget limitations, and she explained that the appeal amount did not include moving expenses and based on the assumption that my apartment was partially furnished in which she then advised me to submit another appeal with XXXX XXXX, the associate director of financial aid who I also sent an explanation email to on the XX/XX/XXXX. On XXXX XXXX XXXX sent an email confirming that {$6600.00} were sitting in a holding account in which she returns in batches. XXXX explained that she would proceed with returning the funds to Discover student loans once I completed the budget appeal process. On XXXX XXXX I spoke with my dean of students explaining that XXXX told me that there was nothing else she would further consider for extending my budget beyond my books for the semester. My dean of students then reached out to XXXX, and XXXX advised that I submit a budget appeal amendment to include my full cost of books for the semester and a possible travel extension due to the loss of my step-father the week prior. I sent XXXX a breakdown of my books for the semester along with pictured receipts and details of my current situation. On XXXX XXXX XXXX sent an email to me explaining she processed my additional budget appeal request for a total of {$1200.00} for full travel allowance but not the full book allowance because it was partially accounted for with my cost of attendance. XXXX also stated that the remaining amount of {$5400.00} should be returned to Discover student loans. The {$1200.00} were direct deposited to my account on XX/XX/XXXX. On XX/XX/XXXX I called Discover student loans in addition to logging into my student which not shows a balance of {$31000.00}. The discover manager with whom I spoke with said that they didnt information about any funds be returned from the XXXX XXXX XXXX XXXX they only showed there is a second disbursement set for XX/XX/XXXX for the amount of {$23.00}, XXXX. Also on XX/XX/XXXX, I called the financial aid office and spoke with XXXX XXXX. I explained to XXXX my current frustration and confusion with my private loan excess funds issue. I explained to XXXX that the schools financial aid policy states that any excess funds on the students account after tuition and fees have posted are to be disbursed to the student and that the only instance where student funds are adjusted is when a student receive a scholarship award, intuitional or government awarded funds that exceeds the cost of attendance and I only received a merit tuition waiver for {$19.00}, XXXX for the entire year which is dependent on my GPA at the end of each semester. I asked XXXX about the process for FAFSA XXXX  plus loans and what is the difference between the XXXX plus loan and a private loan that is covering the same amount of tuition and XXXX stated that he sees my point and could not give me a clear answer as to why I would be able to receive excess funds with the XXXX  plus loan and not a private loan and that he has never seen anyone in my situation with only private loans. He said he could only explain that because I have a tuition waiver that is need based aid, is one of the factors as to why I cant receive my private loan access funds. He directed me to speak with XXXX XXXX once more who could probably better explain. On XX/XX/XXXX, I spoke with XXXX XXXX once more regarding the difference between the XXXX plus loan and a private loan in which she advised me that I would be in the same situation that I am currently in because they have to follow federal guidelines even for private loans based on FAFSA information. I then explained the school policy as to excess funds that is to be released to the student and that it is awarded amounts that are not given beyond cost of attendance and not loan amounts in which has different requirements. She explained that she doesnt know exactly what to tell me and she asked me what exactly am I asking for at this point. I explained to XXXX that I do not have enough funds to cover essential needs and rent for the remainder of the semester. XXXX apologized for my financial hardship and asked me was there anything else they havent considered in my budget that she can add in to try to release more of my private loan funds to me. I then explained everything, and XXXX stated that she will look at my file again and that the only thing I can do is submit more budget appeals for the upcoming semester. XXXX XXXX XXXX financial aid office is refusing to follow their financial aid policies and give me the correct financial assistance so I can afford basic living necessities through each semester by disbursing my excess Discover student loans to my account in which my apartment and other living expenses were based on the amount certified by the XXXX XXXX XXXX