Loan NIGHTMARE.

I am going to college this summer at my local college, before moving to Iowa.

I could not figure out why everyone I went to HS with, went to college out of town, and now I know why.

BTW: This is a public, community college of about 2,000 people.

I was approved for pell grants, and sub/unsub loan through FASFA.

My college denied my loans.

I went to college there 6 years ago and felt overwhelmed and felt I did not make the right career choice, so I dropped.

I did not receive any loans.

So this college denied my loan because I dropped out 6 years ago. Ok, fair enough.

So I applied for a PRIVATE student through Sallie Mae.

They DENIED that loan.

They sent me a letter, basically stating I would “receive more money than needed, if they approved this”.

I am only receiving $1,000 after tuition for summer semester. This does not count books, lunch card, etc.

They said they would only approve my PRIVATE LOAN. That I APPLIED FOR, with my OWN CREDIT REPORT.

IF…I provided receipts.

That is RIGHT. They want me to buy a laptop, books, and everything else OUT OF POCKET and REIMBURSE me WITH MY PRIVATE LOAN. THAT I HAVE TO PAY BACK.

Can you believe this load of BS?

I’m confused, who do you think should be paying for your college education? Did you work those 6 years and earn/save money? If not, what did you do for those six years? If nothing, you may not appear a good credit risk. How about working your way through the rest of it like thousands of students do. Sorry, maybe I am missing your point, but college isn’t a given.

Sallie Mae approved my loan.

The federal government paid for my education, the loan from SM is for school related items, such as a laptop, books, transportation, etc.

This loan is not federally insured, and I have to pay it back, it’s not free money.

If a private company loans me money, it is not the business of the college to ask what I’m spending it on, it’s the business of the loan company.

The college simply receives the money and puts it in my bank account. They should not be in the position to decide this, I can understand this for federal funds, not private funds issued via credit checks and reports.

I should not be expected, as someone who earns below the federal poverty line, with a 0 EFC, to buy everything out of pocket, show the receipts, and then get paid back with money on loan from a private company, that I must pay back after I graduate.

If you apply for a STUDENT loan, then the company can make you spend that on college things, just like a car loan is for a car, and a mortgage is for a home.

Understandable. What is not understandable, is the college wanting me to buy everything out of pocket to get reimbursed.

It is not unusual for colleges not to release excess funds (those beyond tuition, fees, room and board) until after the drop/add dates, withdrawal dates, or just when they get around to processing the funds. It does make it hard on students to get books or other things they need but that’s how it is. One of my kids gets her refund fairly quickly, the other not until 5-6 weeks into the term.

You aren’t getting it…they aren’t giving the money at all without proof of purchases.

They sent me a sheet to fill out, with itemized expenses, one for computer, one for transportation, etc, it says “receipts required”.

They are expecting me to pay out of pocket FIRST. How far into the semester makes no difference.

as @blueskies2day asked, do you have money saved at all from the 6 years since you were last in school? I hear your frustration, but are you ABLE to pay and then present the receipts and get reimbursed?
So, @CollegeGuy92, is your post to vent, to ask if it is legal, to ask what other options there my be…?

If its about the legality…far or unfair, the reality is that they can decide to whom, how and with what stipulations money can be lent.
If the later, can you work extra this summer to save for books and transportation? Can you get a laptop on credit via a student program at a retailer, then pay it off when your funds come through?

If you’ve been approved for a federal student loan, I don’t understand how the college could override that decision. The FAFSA.gov site should have a phone number. I’d call and ask them about it. If they think you qualify, I’d go to the college’s financial aid office and ask to have them reinstated. If you’re approved for the federal loans, they’ll be disbursed to the school to cover your direct expenses. Anything that’s left over will be sent to you part way through the semester.

I wouldn’t take a private loan to cover travel expenses and books to attend a cc if I could avoid it. Are you working? Can you get extra hours to cover your travel? If you don’t have a credit card, you’ll have to save to pay for books, a laptop, and travel expenses. You may be able to get by using a computer in the library for a few weeks, and many books can be found (used) online. The only books you’d have to buy new are those that have an online/digital code.

If you can’t afford to pay up front for the materials you need to take the classes this summer, you may be better off waiting until you get to Iowa to go to school. Summer sessions eat into your total aid allowance (I think Pell provides 12 semesters), so if you’re only taking a class or two it might make better sense to wait until you can attend full-time anyway.

Agreed with others with daily chants of ex graduates saying “Forgive my loan”, “Wipe out my loan” there is clearly a loan problem. There reason college is so expensive is mostly due to the endless free $$$ .gov gives out and imo it has to stop.

There are ramifications for our choices in life. The day ANY president forgives student loan debt I will be livid because it is a direct slap in the face of all the responsible people who sacrificed, struggled, to make those payments for 10 years (clears throat like we did all 79k worth).

I think your best option is to wait or try on your own credit you sound mid 20’s have a job right?

The school may not participate in the federal loan program, which would be why it was “denied.”

When using personal credit, it has to be paid back right away, and carries a higher interest rate.

I am sorry if you were born with a silver spoon in your mouth, and your mommy and daddy paid for your braces, your cell phone, your car, college, uni, etc.

47% of Americans couldn’t come up with $400 if their life depended on it, and I am one of those people.

The local CC denied my federal loan due to their satisfactory academic policy (SAP), most schools have these in place, but how strict they want to be with them, is up to the school.

I asked to be reinstated, in fact their SAP says people can, if they can prove certain circumstances.

I told them I was undergoing a serious case of depression and anxiety (which was true, I almost took my life), and felt college right out of high school wasn’t for me.

They wanted medical proof…from six years ago.

My school is being very strict. I’ve already had to send them a metric crap ton of paperwork proving things. I did none of this when I applied for aid with the CC in Iowa. They approved everything right away.

I suffer from anxiety, and sometimes have to take medication due to it.

You have no clue, how much of a hassle this has been. All I want to do is succeed as an American, in fact I have a huge passion for success, but something has always ended up standing in my way.

Key example…anytime I would save a lump of money, something always happen. Every single time.

Before I had Obamacare, it was something health related, or something would go out on my car, or I would get laid off and have to use the savings to pay for bills.

Being poor absolutely sucks, I don’t think the middle class or the rich have any idea how depressing and nerve wracking it is.

I am in a near-constant state of anxiety, because I worry something is going to happen, and I wont have the money to cover it. It has happened quite a bit.

That is why I’m going to college, I want a good paying job, I’m sick of having nothing to 20 dollars left over after I get paid.

Yet the CEO of just about any large company makes in two hours, what I made all of last year. Not a fair system.

Sorry to vent, I am just very frustrated with how corrupt this country is.

If you’re in a near-constant state of anxiety, you may want to get that under better control before beginning school again. You already have an SAP issue, so you want to give yourself the best chance for academic success. Is the financial stress of this local CC worth the risk? (Not being snarky. Meds and CBT worked wonders for my anxiety issues.)

Is this directed at me? I understand your frustration, but making assumptions about people you don’t know anything about won’t help you.

I think you’re smart to plan to go back to school, but the cc you’re trying to work with doesn’t sound like it’s worth the effort. Do you have family in Iowa? Or is your family in your current state? You have to take care of your health first, and if you suffer from anxiety it might help to have family nearby. What do you plan to study?

That is absolutely right. The school is only obligated to pay you for the cost of attendance. It sounds like if you pay for these extras, they will be added to your cost of attendance.

I am getting it. You have been approved for a student loan through Sallie Mae and the lender is requiring you use the funds for college expenses. The school, which is administering the loan, requires you to use the money for school expenses. You find this unfair, but that’s how student loans work.

This happens all the time. Students need to move into the dorm, buy supplies, travel and they need to do that before the school will give them the financial aid (loans, grants, scholarships) that is going to cover those expenses. Some schools will advance some of the money, or let the students charge it to a bookstore account, but many students just have to come up with the money and be reimbursed. Often when employers pay for school, the student/employee has to pay and then, after the course is passed, there is reimbursement.

Did you think they were just going to take your word for it? Anytime anyone looks for special dispensation from a college for a medical issue he has to show appropriate proof. Why can’t you get medical records or a letter from whoever treated you? It’s only six years, not sixty.

There are many circumstances in life requiring us to jump through bureaucratic hoops to achieve a goal. It’s not pleasant, but it’s tolerable.

How much does this community college cost?

Eh, for what it’s worth, I don’t think being poor is really your issue. I was poor (really, really poor), and while I can empathize with your frustrations, I also learned (after many errors and closed doors) that the way out of them isn’t to rage against the machine. It’s figuring out how to make the machine work for you.

I can find my health records from years ago-it’s a total pain in the butt to do it, but I can if I need to. Learning how to jump through all the stupid hoops that life places in your way is the start of getting out of poverty. Acknowledge that they are stupid, arbitrary, and pointless. Then do them. It’s how the gatekeepers work.

Thinking ahead a bit, do you have any skills that could get you a job at that CC and/or eventually at a university? All the colleges and universities I know of offer staff either free or heavily discounted tuition and fees. Yes, you might end up on the one-or-two-classes-a-term plan for a pretty long time, but your education would be more affordable and you wouldn’t need to quit your day job to go to school.