<p>OK, my situation is rather unique. I graduated from college a few years ago. Here's the situation: I had an arrears tuition account that I wasn't able to pay for several years after graduating, because I was disabled and unemployed for some time. I wasn't able to get any private loans, because of the strict credit guidelines. My credit is poor. Since the college won't release my official transcripts until I pay the full balance on my account in full, I have to act quickly.</p>
<p>I called up one of the federal aid companies and was told that I would be eligible to take out a federal stafford loan to clear this debt, since (a) it is an education debt and (b) I never defaulted on any of my previous stafford loans. So, I filled out the FAFSA form and applied for the independent student stafford loan through Chase.</p>
<p>When I contacted my former college to try to resolve the debt and inquire about receving any federal assistance in doing so, they were not very helpful and seemed uninformed.</p>
<p>Does anyone know if the school will have to guarantee this loan? I figure they would want to be paid. I have no other options in paying this debt back, and I want to be able to apply to law school this Fall. I need those transcripts. I want to enlist the help of the federal government in taking care of this education debt, and if they told me there isn't any issue, I went ahead with it.</p>
<p>Thoughts? Suggestions? </p>
<p>Thanks.</p>
<p>I noticed you arent getting responses so let me see if I can help
You attended a college, you had Stafford loans which you paid or are paying, although there also was other debt that hasn't been paid that is owed to the college</p>
<p>I assume you are no longer disabled, in a way that would prevent you from completing the demands of applying to and finishing law school, and I also assume that you have been able to support yourself, even though you were unable to after graduating college.
Have you attempted to make any payment arrangements with your college?
Was this a loan from the school and has this debt gone to a collection agency?
I think your most pressing agenda item is to take care of the debt, I would disagree that getting a loan to attend law school and using some of that loan to pay your past debt is your only option.
If your debt hasn't gone to a collection agency, then see if you were charged interest/if you can get the debt reduced to a managable amount.
If it has gone to a collection agency, then you are going to have to deal with them, and only when that has been taken care of, will the school release your transcript.</p>
<p><a href="http://www.finaid.org/loans/%5B/url%5D">http://www.finaid.org/loans/</a>
If you don't owe any state or federal funds, then you should still be eligible for Stafford.( assuming the money you owe was private college money?)
But if you pay your previous school with the money that you are attempting to get to pay for law school, how are you going to pay for law school?</p>
<p>Thanks for your help. Yes, this was a private school I attended. However, they did pass the outstanding debt over to the collection agency about 3 months ago. I did call the collection agency and told them I applied for a federal stafford loan, and they were fine with that. So long as I get the money to pay the school (as I understand it) it doesn't matter that the collection agency now holds the account.</p>
<p>Re: your last point about how would I pay for law school, if I am using a Stafford loan to pay the college, I believe I would still be able to get another federal loan for the fall 2007 semester. The loan I am taking out to pay for my college debt is under $6500. So, I think I'd still be eligible for additional federal loan money (as an independent graduate student), as well as grants, scholarships, other aid I can apply for.</p>
<p>Melyssa, please be very, very careful re this collection agency. Before you pay them a cent, make sure that they will (1) clear your account in full; (2) report "paid in full" to all three CRAs; (3) get some assurance that they do not resell any part of the debt to another collection agency (common practice).</p>
<p>If I am intrepreting it correctly- it seems she is in a catch 22 situation
she needs the 1st college to release her transcripts so that she can apply to law school and get federal loans which will partially be used to pay the collection agency to which her account from the 1st college sent her debt </p>
<p>so if the college will release her transcript without the collection agency notifying them that they have been paid- then she is good to go-but it sounds like that is where the hold up is</p>