<p>During my Senior year I withdrew from one semester after another due to some difficulties. I intended to return, but made no effort to make that fact known. As such, my loans were called in by my school and transfered to a collections agency. In total my loans are around $10,000. I have straightened out the difficulties I was having and would like to return to school, however my university will not release official transcripts until I pay my loan. Any ideas/help/suggestions so that I can get back into school would be much appreciated.</p>
<p>I have one subsidized and one unsubsidized, each totalling around $5000. I have made payments but am struggling to do so what with other bills and am not current. I was looking into deferment due to my difficulties.</p>
<p>I wasn’t aware that schools would hold transcripts for federal loan arrears. Your school didn’t “call in” your loans, btw, you just exceeded the 6 month grace period that Stafford loans have. Once you dropped below half-time, the clock started ticking. When you say you WERE looking into deferment, does this mean that you’re not paying them and they’re not in forbearance now? If the school is holding up your transcript for this, you’re going to have to rehabilitate them and put them into forbearance or apply for income based repayment. You’ll have to do this anyway, as you won’t be eligible for additional federal aid if your loans are in default. It’s in your best interest to get ahead of this now, before the interest and fees drive your costs up further.</p>
<p>My apologies, I AM looking into deferment, however I believe I no longer qualify. As for the payments, I am doing the best I can and my lender understands this. However, I am not where I should be with their payments, as I only make payments here and there. I really wish this wasn’t the case, but I’m just now getting my life back on track and would really like to finish the college career I started. What is forbearance and how do I get a loan into this? I wil do some research of my own as well, but you seem knowledged.</p>
<p>As said above, your school did not call in your loan. Once you exceed the grace period of 6 months less than half time, Stafford loans go into repayment automatically. The school also does not send the loans to a collection agency. Whoever holds the loans (which is not the school) may send them to a collection agency if you have not made payments on them.</p>
<p>Are you sure the school is holding your transcripts because of loans? It seems more likely that you owe money to the school. When you withdraw during the semester some federal aid has to be repaid to the government by the school and you then owe the school money for whatever that aid had been used to pay (tuition or whatever). Check with the school to see exactly why they are holding the transcripts. If it is because you owe them money, then the only way to get the transcripts is to pay the school what you owe them.</p>
<p>As far as the loans are concerned, most of the forbearance and income related payment options require you to apply before you go into default. You need to get that sorted out as you will not be eligible for any sort of aid to go back to college with loans in default.</p>