Hello everyone, I have a question about a debt I owe to the first school I went to. I ended up flunking out by not going to classes because I was an idiot. Well, now they say I owe 13k if I want to get a hold of my transcript (because my financial aid did not pay them because of poor grades). It seems I owe the school directly. Apparently the charge has gone through collections and back to them, accruing interest and big fees (it is no longer building interest).
My question is, how would I go about paying this in order to get my transcript so I can continue school? I’m currently at community college trying to transfer to a 4-year school.
Would it be possible to get a student loan that will pay for prior tuition debt? Am I going to have to get a very expensive private loan?
Any help would be great. I messed up and I’m definitely paying for it!
I went to school there about 8 years ago.
Did you borrow anything to attend your cc? As a sophomore you can take the $6500 federal student loan. If you’ve already paid for the cc, it will be refunded to you. But you’ll have to request it quickly before the time runs out because you can only borrow it before the school year ends. You can use what you get to pay down your loan and work for the rest. You could take a gap year to work and pay the balance instead of trying to get a private loan.
You get a job…and you pay off your debt.
I would not suggest you take out another loan…to pay off an old loan. Actually…if your old loan was not paid…and was federally funded, you will not be eligible to take out another federally funded loan until you clear your debt obligation.
So…contact the college…set up a payment plan…and work work work to pay off the debt.
Thanks for the replies. It’s not a loan. It’s money owed for tuition expenses after a grant refunded their payment to the school because of poor grades. All my federal loans are in good standing. I had no idea this was even owed until recently. I have rent and a car to pay for so it’s difficult to just save up 13k on a lower salary…
I haven’t borrowed anything for my current cc. I’ll look into the $6500 loan and work out paying the rest. Thanks !
I’m pretty sure it was a Pell Grant …
You need to call college 1 and work out a payment plan with them.
Is there any chance you could get a roommate, move back in with your family…something…to save living expenses?
You need to pay this debt. There really is no way around it. And it was for federally funded grant aid…I’m not positive you are eligible for more federally funded aid until this debt is paid.
@kelsmom?
I’ve already been receiving federal aid for my time in community college. I live with my brother so rent isn’t terrible. When I talked to College 1 they told me they would remove roughly 3k of what is owed if paid in full, otherwise I could set up a payment plan for the full balance. Makes me wonder what makes more sense financially. I have about 5k saved up…
If you have $5k and can still get the $6500 federal student loan, see if the college will take the $10k and write off the rest. Get it in writing, though, and if they’re local pick up your transcript when you pay.
Thanks a lot for your advice-- I’ll do some more research and get all this sorted out.