Money owed to university

I have withdrawn from a university and have they gave back money to the government that i wasn’t “using”. Now I owe them and they will withhold my transcript. However, I had already ordered a transcript and was accepted to another university I will start In the fall. Do I still have to pay the old university or should I leave it there?

Yes, you have to pay the old university.

You owe them money. Of course you need to pay it back!

A school charges tuition, fees and other costs per semester. If some of it was covered by federal loans or grants and you didn’t finish enough of the semester to qualify for the whole amount that you were awarded, then the school is required to return the federal aid and you then owe them that money.

So yes, you have to pay them that money. Hopefully they will let you make payments or you can work extra hours until you go back to school to earn that money.

You don’t want the debt to go to collections or it will mess up your credit for years.

Your aid at your new school might also be affected if you didn’t complete enough credits. You need to find out.

So how long will it take for it to go to collections? Would it be possible to make it to the fall and pull out extra money from fed loans at that college, to pay off this debt? Perhaps I should set up a payment plan of like 100$ until the fall semester. Any thoughts?

Contact the school and talk to them, once it goes to collections it will be out of their hands.

How do you know that you can even get more aid for next fall?

Why did you withdraw from this school?

Since you withdrew before the semester was over, can’t you work now and earn some money?

You don’t want it to go to collections. You don’t wNt to pay the penalties, and additional charges.

okay I will contact the school and pay over time until next fall, and pray for extra aid (this is usually done by fin-aid covering housing and transportation of those I will not need to use because I will be staying at home). I will be getting a job within a couple days I am just waiting on background check information to reach them. I withdrew from the university because of a major change and how expensive it is. I am moving to an instate school which is a fourth of the price I had been paying. I receive financial aid because of my mother who is single handed raising my 6 siblings and I. Thank you all for the information I believe I can pull through this mistake of withdrawing early in the semester.

Be careful about planning to use “extra” FA to cover this year’s debt. If you live at home but your FA package was based on living in the dorms, the amount you actually receive we be recalculated and will be reduced since your need will be less when commuting.

You also may be prevented from starting at the new college because the first school will not release the transcript. The transcript you already sent may not be an official one.

Go to the school, set up the payment plan and see if any refunds can be made to your account; you never know if you had a deposit, a refund from dropping on time, a credit on the meal plan, etc.