Irresponsible Judgment regarding College Transfer

Parent Cafe
1

<p>Although the following testimony involves tuition, I thought it would be better to post it on this board because I couldn’t find a thread on CC dealing with a similar issue. As a disclaimer, I admit the callow/self-centered/what-have-you nature of my decisions and welcome any criticism, though I hope that I might also learn some advice.</p>

<p>To begin with, most of my academic progress has happened at the local community college. I transferred to a private liberal arts university last spring, where I successfully completed a semester with a 3.6 GPA and all tuition covered, i.e. through Stafford loans on my part and PLUS(es) from my mother. </p>

<p>Last fall semester, I withdrew from the university – I was on a Business major track – prior to the 60% semester cutoff. As you might have expected, my (Title IV?) loans were returned to the federal government and I now owed the university some $4,000 in tuition. (The total tuition for one semester is about $9,000, which my mother’s circa $5,000 PLUS loan covered.)</p>

<p>I reacted extremely poorly, that is, I ignored the university’s demands for immediate payment, even past the date that they turned it over to a collection agency. My reasons for this are similar to why I withdrew: I did badly in Accounting and sank into depression as my grandmother’s health deteriorated (she died last November, after I’d withdrawn). I did not inform the university of any of this.</p>

<p>ASIDE: I was hired for a student job prior to me dropping out, from which I was fired over e-mail for missing one day of work without advance notice, to say nothing of the position’s supposedly “two allowed unexcused absences” policy. My 8 paid-training hours were clocked in, but as of today, I have still not received a paycheck. I wonder if I should take this to a small claims court…</p>

<p>Fast forwarding to now, I realize that to transfer elsewhere, I will need a transcript from that university, but will certainly not receive it until the $4,000-some tuition debt is resolved. I am very troubled as to what I can do to pay back the owed amount. My credit score is alarmingly low for a 22 year old (602 from MyFICO for January 2009 – I have 90%+ balances on EACH of my three credit cards), and I fear that I will not be eligible for a private loan. My mother and I have mutually agreed that she will no longer contribute to my financial aid because of my irresponsibility. </p>

<p>Please suggest what options I have to help solve my turmoil.</p>

2

<p>You need to contact the university, tell them what you’ve told us, and arrange for a repayment schedule.</p>

<p>You will need to get a job so you can repay the university.</p>

<p>You also may need to do whatever you can to get some kind of counseling since it sounds like you may be suffering from depression. If you lack insurance coverage, you may be able to get free or low cost counseling from a minister or a nonprofit agency such as agencies that help grieving people.</p>

<p>I hope these suggestions help.</p>

3

<p>What is done is done. </p>

<p>My suggestion would be to take a year off, move back home if you are able (or move in with some friends and pay cheap rent), get a job, and pay back the 4K to the college. You’ll feel much better having that monkey off your back.</p>

<p>If you are very industrious, you should be able to pay back the 4K plus what you have on your 3 credit cards in a year or so. (Though you didn’t mention how deeply in debt you were there.) However, a young person doesn’t need to limit themselves to a 40 hour work week… work 60+ hours combining a few jobs. While it will be a bit of a grind, how fast you get out of this hole you have created is in your own hands.</p>

<p>You say you are a business major - the reality is that the best business people do <em>not</em> rely on fancy degrees to make money. Many financially savvy business people dropped out of school… I’m not saying to not finish your degree… I’m saying that any business major who lets 4K discourage him from building his financial empire probably should get a reality check and switch majors and readjust career goals. Get out there and WORK!</p>

<p>It shouldn’t take you very long. If it takes you several years, great. I doubt it needs to take that long. Just don’t get too side tracked into getting into a consumerism lifestyle once you have a paycheck rolling in… a nicer eletronic goodie here, a nicer jacket there, a night out with friends here, a fun trip because “I earned it” there… you can get trapped into living paycheck to paycheck and never pay off your debt or get back to school (welcome to what 90% of Americans do - don’t be so ordinary!). </p>

<p>Once you pay off the debt, then you can start fresh back into college. I would recommend an affordable state school. Suze Orman made 6 million last year… she graduated from a very ordinary state college. Don’t let name brands of the college fool you into thinking that the degree is what makes you the the money. <em>You</em> open the doors of opportunity, not the degree.</p>

<p>Many young people pay their own way through college. Taking a few years off to work fulltime is an honorable route to earn that money. Long term, if you work and save until you are 23, you can then apply for financial aid as an independent. Look for scholarships. Or a job that has tuition benefit. Work during the day and take night school. You have lots of options but generally one theme - work hard.</p>

<p>Best of luck,</p>

<p>Annika</p>