I seem to have a semi unique issue that I would like some feedback on. I wen to The Art Institute of Houston in 2011, but had to drop midway through my second semester for medical reasons. It turns out they sent back my federal student loan, and now I’m stuck owing the school roughly $4000. They won’t release my official transcript so I can attend another college (financial aid is requesting the official transcript from AIH) as I owe them money. They also won’t work out a payment plan with me so that I can get back into school sooner. Does anyone have any experience with a situation like this, and how to address it?
Did you pursue a medical withdrawal with them? Provided them with documentation about your illness?
If you withdraw before having earned all of the federal aid, the school is obligated to return the aid and you owe them for that money.
You need to work and pay them back that money before you can get your transcript.
What have you done in the last 5 years? Have you worked and saved up money?
It’s another one of those for-profit schools with some measure of notoriety when it comes to student loans and lack of educational value:
That is not the issue for the OP, however. The issue is that withdrawals prompt a required Return of Title IV Funds calculation, mandated by the Department of Education, based on the number of days the student attended class. All schools are required to perform the calculation and return any unearned funds to the government.
I didn’t say the OP’s issue about the federal loan had to do with it being a for-profit school.
Just providing some background information. Maybe that relates to why the school won’t agree to a payment plan.
Either borrow the money to,pay back the loan…or get a job and save save to pay back the loan.
Any chance your parents or someone will float you a loan? You could,pay them back little by little…but pay off the school immediately.
Another issue you may have, however, is meeting SAP. You withdrew from all of your courses? Check to see if your new school will be looking at your Satisfactory Academic Progress. If they do…and you haven’t met SAP, you wouldn’t be eligible for aid until you meet SAP requirements at your new school.