Whether you take out a new loan does not affect your enrollment status

This is a large misconception that exists.

Your enrollment status and your FAFSA have nothing to do with each other.

Two examples on opposite ends of the spectrum.

Example 1:  A borrower calls in wanting to know why their status is not updated.  After explaining this is done through the school often times through NSC or NSLDS, the borrower then says “But I already applied for a new loan for the school year so why wouldn’t you know?”  (Another version of this is I changed my last name on the FAFSA, why don’t you have it updated)

Example 2: Borrower wants to know if in-school status will be updated since they are paying for the loan out of pocket.  Their concern is that we will only get word of their enrollment if a new loan is attached to it.

The truth is simple.  Enrollment is updated one of three ways

1)School updates National Student Clearinghouse or National Student Loan Database System

2)Borrower has school fill out bottom section of In-School Deferment form (borrower fills out the rest)

3) School sends enrollment update information

Your enrollment status has nothing to do with your FAFSA (though I do understand the mistake!)