Can't pay balance from Fall 2008 semester daughter can't transfer to another college

<p>I am desperately seeking finances to pay off Fall 2008 balance for my daughter so that we can transfer her to one of our state schools which will be less expensive and she can't attend Spring 2009 semester because school currently at has a financial hold and she can't transfer back home to go to a less expensive state school because current school won't send transcript until balance is paid. I am a single mother of one and struggled for 18 years, not prepared to send daughter to college but she got financial aid and scholarship so the first year really didn't have anything to pay besides send money monthly and buy plane tickets to fly home on holidays. Now because of the economic meltdown financial aid was cut drastically for Fall 2008 semester was not aware and am stuck with an $8k balance. I am in no financial standing to pay this and don't have any other resources to go to, am in debt and certainly not credit-worthy. Any suggestions, I hate that I did not have the finances to fund her college education. We have come to terms that she will have to sit out for this Spring 2009 semester and I surely would hate if she wouldn't be able to attend come Fall 2009. WE NEED HELP!!!!!!!!!</p>

<p>Did your daughter consider loans w/ no interest until she graduates?</p>

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because of the economic meltdown financial aid was cut drastically for Fall 2008 semester was not aware and am stuck with an $8k balance

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<p>I hope you are able to solve your problem. But I do have some questions. How were you NOT aware of your financial obligations to the school? Your daughter's financial aid for this year was surely awarded BEFORE the fall term started. It would have come in writing. In addition, your bill would clearly have stated any financial awards being applied to your student account AND the balance due. it's very hard to NOT be aware of these things.</p>

<p>You need to figure out a way to pay the bill. Perhaps your daughter's current college will work out a payment plan with you. Call them and ask. Can you take out a loan or borrow the money from a trusted relative? </p>

<p>Someone else on this forum had the same issue last year and I seem to remember that their child WAS able to enroll in a new school...but just could not transfer the credits from the old school for the unpaid term...until the bill was paid. </p>

<p>Call the school to which your daughter wants to apply and ask them THEIR policy (isn't it getting kind of late for a transfer for THIS term?). And call the old school and see what they can do to help you with a payment plan and a plan of action.</p>

<p>Just FYI...colleges won't release transcripts if there are ANY outstanding bills. My son had a $10 outstanding bill and it had to be paid before they would award him his diploma.</p>

<p>My son had a $10 outstanding bill and it had to be paid before they would award him his diploma.</p>

<p>I know of high school students who were told they couldn't walk at graduation because they had library fines.
Whats worse is that the books were returned but not cataloged properly, I helped the students track them down myself.</p>

<p>Its true that returning students generally have to sign things in the spring at the latest for the next school year. However, it is also true that quite a few schools, give great aid for freshman year to get people sucked in.
Always, Always, look and see what are the size of loans people graduate with. ( stated loans I believe are quoted just for students- not parents).
Look and see what percentage of need they meet.
Some schools meet 100%. Even before the current economy some schools may meet an * average* of 68% but that might mean with some students, they only meet 30% of their need and others, much more.</p>

<p>So I am guessing that the $8,000 is just for this past semester or is it for the whole year?
I am wondering what kind of money did you send monthly?
My daughter had a work study job that paid for books, supplies and personal items- but we were lucky in that trips home were $30 for a train ticket.
Is your daughter eligible for work study?
Is it possible to reduce costs for room/board, by living off campus? ( kids can often rent a house cheaper than dorm space- depending on location- food is cheaper too)
There may be a way to help her complete her year while a back up plan is found.</p>

<p>It sounds as though she will need to take the Spring semester off from college, live at home, and work full time to help pay off the debt.</p>

<p><<i know="" of="" high="" school="" students="" who="" were="" told="" they="" couldn't="" walk="" at="" graduation="" because="" had="" library="" fines.="" whats="" worse="" is="" that="" the="" books="" returned="" but="" not="" cataloged="" properly,="" i="" helped="" track="" them="" down="" myself="">></i></p><i know="" of="" high="" school="" students="" who="" were="" told="" they="" couldn't="" walk="" at="" graduation="" because="" had="" library="" fines.="" whats="" worse="" is="" that="" the="" books="" returned="" but="" not="" cataloged="" properly,="" i="" helped="" track="" them="" down="" myself="">

<p>Yup. This happened to us, a missing $12 book. the summer after HS graduation I got a call from someone at the school. They found his missing book that I had paid for and sent him a check equal to what I had to pay.</p>
</i>

<p>Finding out exactly exactly how much you are getting in financial aid your second year and what form it will be in can happen somewhat late in the game at some schools. I have heard of this happening before. It sounds like the bill for fall semester was $8000 and then the bill for spring semester will be another $8000 and you need to get your kid out of there right now. I feel for you. </p>

<p>Celestejam, if your daughter absolutely needs the transfer credits to enroll at the new school, your daughter needs to find a way to borrow $8000 quickly. Could her favorite guidance counselor from her old high school possibly have any ideas for you?</p>

<p>Or can you check on Thumper1's thought about enrolling at a new school, the state school, just on the strength of her high school record, and transferring the credits from the private school later?</p>

<p>It is sad - many private colleges are not very helpful. Colleges should provide more actual support and advice for low-income students. Students need not just an academic adviser but a real adviser, someone who knows the ins and outs of financial aid and can help with logistics that can be difficult for low-income kids: figuring out how to get to school, figuring out what to do over breaks, figuring out how to eat when the cafeteria is closed.</p>

<p>What is the nature of the aid cut? Did the school promise a certain amount and then change that or did she have a private scholarship that reneged? If the latter, could you contact the school to work something out as they should be able to appreciate a problem like that and make some kind of adjustment. Not saying that they would but contacting the aid department to see if they would forgive that amount couldn't hurt.</p>

<p>This situation highlights one thing for me. Parents should strongly encourage their students to sign whatever it takes at the college so that the PARENTS can view the bills and the bursars statements monthly. Our kids did this...it would have been very hard to be surprised as each month we got a statement telling us what had be credited to our account and what we owed.</p>

<p>At the school I work at, kids are having their FA adjusted mid-year. It generally happens because the family was chosen for verification, didn't understand the process, didn't get forms in at a timely manner, which is exacerbated by a slow and inefficient FA office which often loses things, and the upshot is the aid is re-adjusted mid-semester. Whereupon the family suddenly has a bill. Most of our students are first gen, low income, so the process is confusing to their families. Not an excuse, but an explanation.</p>

<p>but the question really is WHY didn't the parent know about this situation until now? Wouldn't the college send something to the parent ?</p>

<p>How could she pay for the cost of a state school if she can't pay her outstanding tuititon bill for last semester? </p>

<p>Can she register for classes at the state school on the basis of her high school transcript alone until she can send her college transcript? Can both of you go into the financial aid office to discuss a payment plan and your alternatives? </p>

<p>She may have to take a semester off and use that time and the summer to earn money. It sure wouldn't be the first time that a kid has had to do this. If she does have to take some time off, then she could try to get some credits at Community College to keep working on her degree. One kid has a friend whose Mom cleaned out the kid's bank account to pay for rent, using the kid's college savings. That kid had to declare herself independent, and got an emergency loan from the school based on her new status. The schools' financial aid offices have heard everything, and can give you the best advice how to get through this.</p>

<p>She can try her Dad and grandparents, if any, and any other family members. (Many people are struggling financially, so I understand that this might not work). If they could help by paying something directly to the school on her behalf, it might show the school that you intend to work on a payment plan. They'd probably rather get some money than have their students have to drop out completely, especially if she's a good student. </p>

<p>It's heartbreaking, but she has a lot of company. I have two kids in college and one in high school, and my college kids tell me that almost all the kids in their schools are really worrying about paying their bills right now. Some of them haven't gotten their promised loan monies for last semester yet, but have been permitted to start classes anyway. My kids believe a few of their friends are going to have to take a leave of absence for a semester to earn money.</p>

<p>Sue, as I said, some of these kids are getting the adjustments late. Since the family is in the process of figuring out transfer, i'm assuming they didn't "just" find out, but are now up against the issue of the non-released transcript.</p>

<p>I agree with others that probably the D is going to have to take some time off, earn money to pay the school back, and then transfer. However, the kicker is that if she makes that kind of money, it's going to count against her with FAFSA in the future, which won't care that the money went to pay past educational bills, but rather see it as income to be tapped for the future. Talk about Catch-22s!</p>

<p>I wouldn't judge the OP too much. I think it's understandable to be in a little bit of denial about one's inability to pay for an education, and reluctance to disappoint the daughter.</p>

<p>Community College would probably be a reasonable choice for her for now. Quite a few kids I know who went to CCs for a couple of years ended up transferring into very top level schools. </p>

<p>Someone said that she could attend another school without her transcripts, but her credits wouldn't count until they received those transcripts. I know this is true at my daughter's school. </p>

<p>One question: How will you pay for the state school??? It's important at this point to take a good look at your ability to do that. If you CAN'T, then CC and a job are the way to go. She wouldn't be the first person to pay her own way through college.</p>

<p>How is the family of the OP planning to pay for college this semester (assuming that they could get the transcript released??).</p>

<p>Post #4 wrote that some schools give great financial aid the first year to get students to attend, then lower the aid in subsequent years. Can anyone share names of any colleges or universities that engage in this type of practice? Thank you in advance.</p>

<p>My initial reaction was to have your daughter attend a CC for the spring semester as a non matriculating student, and then she would not have to sent her transcripts. If she were to do this, you should check out the articulation agreements between the CC and the State school to make sure that she takes classes that would transfer. </p>

<p>My next thoughts need some input from those people on this forum who are real financial aid experts.</p>

<p>Do non-matriculating students qualify for financial aid if they attend full-time? </p>

<p>Did your daughter qualify for a Pell, SEOG, state grant or subsidized loan last semester??
If,(and that's why I think we need input from others) she qualifies for these things for the spring semester at the community college (or even as a non-matriculating student at a Public) she may end up with extra funds that can be used to pay part of the balance due at the other school in time to get the transcripts released for the fall. </p>

<p>Another option (assuming she does get a lot of aid- and I'm making that assumption based on the fact that you said you don't have money to pay the bill so I may be incorrect) could be to pay the bill with your credit card, and when the spring financial aid comes in you could pay off the credit card debt with the extra funds.</p>

<p>I would definately post this on the financial aid forum and see what the reaction from some of the people who work in financial aid offices have to say.</p>

<p>Hmmm....There is a little bird sitting on my shoulder that says that this student needs to reconcile her accounts at the OLD college before new financial aid can be awarded...but I could be wrong about that.</p>

<p>Thats why I think the OP should post on the financial aid forum, and get some answers from people who can give a definative answer. Of course paying with a credit card and then getting FA would seem ideal if it were a possibility</p>

<p>I don't think putting student debt on a CC is a smart solution for a single-mom who doesn't have the 8K to begin with. </p>

<p>The debt should stay in the student's name. The student has a lifetime to absorb that debt and pay it off vs. the single mom who is half-way toward retirement and lacking funds.</p>

<p>This family needs to sit down and have a heart to heart about college costs and come up with a joint plan between mother and daughter of what can be afforded or not. And the reality is, reading between the lines, the mother probably can not afford to pay 1 penny toward her daughter's college fund because it likely means the mother is putting it on a credit card, going further into debt, or raiding a retirement fund or house equity - which I am guessing she has neither.</p>

<p>This happens, folks. Sometimes the reality is that the young person needs to take one or two years off of school, work fulltime, save up the cash, and <em>then</em> go to college on their own dime. Mom can help by having the daughter live at home rent free. It is time for Mom to stop feeling guilty and just deal with the financial reality. Mom shouldn't go into debt for the young adult's college - and the young adult should be <em>very</em> leery of going into student loan debt for the degree as well. </p>

<p>It really just seems like Mom and daughter have a very low "financial IQ" and need to read some articles/books and get very serious very quickly about setting their financial houses in order - and then set educational goals accordingly. Depending on what field of study, I would not recommend much more than 5 - 10K student loan debt <em>total</em> for the child to finish her college degree. If that means taking a few years off to work fulltime first, great - do it. I would only recommend 20 - 25K total student loan debt (in student's name with student paying it off - no more parents going deeper in debt folks!) for a student that has A) already proven to be financially savvy and hard working B) <em>already</em> has the temperament and maturity that employers seek so that once college is over transition to fulltime working is highly probable C) has majored in a field that generally has good job prospects (nursing, computers, etc) vs. a theatre/music/or other low paying or disappearing jobs market.</p>

<p>It's okay that there is an 8K debt here. Mistakes happen. The thing to do is not to compound the mistake by transfering the debt to credit card and then adding another mountain of student loan debt or parent loan debt on top of it! </p>

<p>Sometimes reality checks are hard. But they can also be an opportunity for the mother to look at her own finances and coach her daughter to be in charge of her own financial future.</p>

<p>Take a deep breath. Mentally prepare for your daughter perhaps taking a full 2 years off to work fulltime. This was <em>always</em> something that was in the works, it is just that the two of you didn't face this reality back when she was in high school - so the delayed news is a bit of shock. You are not the only family facing this problem. </p>

<p>Mom - <em>stop</em> going into further debt. This is not the legacy you want to pass onto your daughter. It simply does not set a good example to your daughter of how to live within one's means vs. sinking into further debt. We all can hope your daughter will live to be 100 years old (especially with today's amazing medical breakthroughs.) It is okay to have college take a few extra years... the fulltime work and saving your daughter will do over the next few years will add a lot of maturity and life experiences. She may even discover new talents and interests along the way that will influence a new route of schooling once she returns.</p>

<p>Stop treating the 4 year college experience as a rite of passage (or a "right") and start with your own checkbook, credit cards, work/retirement plans... get those in order. Once you have your <em>own</em> plan in place, you'll see if you can even give 1 more penny to your daughter (you probably can't)... and then you can help your daughter make a financial plan for her immediate (2 - 8 years) future. </p>

<p>Simply put, until Mom puts her own financial house in order (or at least have a realistic plan), Mom can't help her own daughter. And maybe the best thing Mom can offer the daughter is that realistic plan of the daughter "paying as she goes" through college.</p>

<p>Annika</p>