My situation: facts only, no excuses. (ADVICE GREATLY APPRECIATED)

Paying for College
1

<p>Hello, and thank you in advance for any advice you can offer in overcoming my current problems.</p>

<p>Before I start I want to provide information about myself. I'm 23 years old, I'm not married, but I rent an apartment with my girlfriend and our 3 year old daughter, my current employer offers little to no room for advancement, but I make enough to support my very modest lifestyle, and lastly I had average credit until recently (coincides with my problem).</p>

<p>Now to my problem - I went to a four year University straight out of High school and failed, miserably I may add. I was put on academic probation at the university and failed to do enough to pull myself out of probation, consequently I was ineligible for Federal Financial Aid, and the University billed me directly for two full semesters totaling just over $14,000. I didn’t have $14,000 to give the University, so I contacted financial aid about a setting up a payment plan; at the time they offered one payment plan, 10% for ten months ($1,400 / per month), I couldn’t come up with this either. In my desperation to pay off the debt I applied for multiple private loans, but the amount was too great and no one was willing to provide me with that type of loan. Eventually the debt was turned over to ECSI (collection agency), at which point late fees and collection penalties raised the debt to nearly $20,000.</p>

<p>I have made the personal decision to not waste my 79 college credits earned; therefore I’m in search of options for getting back into college. My Federal loans are all paid to date thanks to the income based payment option, but here I stand owing $20,000 to my University, for which I have no payment options, I get laughed at in the loan office, I can’t go back to the University until the debt is paid, I can’t go to a new college without my transcripts (obviously being held), and without a degree I see no way of paying back this debt in the near future.</p>

<p>What do people in my situation do? Is there a way to get back to school without paying the $20,000? Is the higher education system really this evil? I realize I brought this on myself, but I cannot wrap my head around the fact that my adult life is essentially ruined because of a mistake I made when I was 21.</p>

<p>Please, advice only, I have lectured myself harder than any of you can.</p>

<p>Thanks again</p>

2

<p>There is no magic way out. You owe the $20,000. The school will not release your transcripts until it is paid in full. </p>

<p>I fail to see how this is “evil”. You flunked out, you did not pay the money you owed. The school is not going to pat you on the head and say “it’s ok, here’s your transcript”.</p>

<p>Plenty of people pay for mistakes made when they are young. You were an adult at time. </p>

<p>You do have an option. Save your money and get a part-time job to pay this off. If you want to go back to school you can do this.</p>

<p>It may take a few years but it is doable. You are only 23. Plenty of people are just starting school much older than you. If you want it badly enough you will sacrifice and do it. But no one is going to give you the $20,000 or forgive the debt and hand you a transcript.</p>

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<p>I highly recommend Dave Ramsey’s book “The Total Money Makeover.” I’m sure it’s at the library. It talks about attacking debt from both ends–raising income, and slashing costs. It’s very motivating–what if you took a second job delivering pizza and could pay off the debt in a couple of years?</p>

<p>You really are only 23. You can do this. Make a plan and stick with it.</p>

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<p>So I am stuck at that the university allowed him to register and be charged for a second semester even though the first semester was not paid for.</p>

<p>Is this common?</p>

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<p>Another good author with ideas for getting out of debt is Michelle Singletary. Her books ought to be at your public library too.</p>

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<p>emerald, good question. My S can’t even register for second semester classes unless first semester is completely paid for, and he’s doing fine.</p>

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<p>Can you talk to your old college about setting up a new payment plan? Stress the point that you are more mature now, with a child. Hopefully, they would release at least some of your transcript (in phases???) if you keep to that new payment plan???</p>

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<p>At the schools i am familiar with, you aren’t on the class roster after the first three days of class unless you have paid.</p>

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<p>I guess I feel like we’re still missing critical information. How many of the 79 credits have grades which would be acceptable towards a degree? 79 credits represents at least two years, where would you be in the education process? Junior? I assume the $20k continues to acrue interest - after all people don’t lend money for nothing. Are you making payments on it now?</p>

<p>If the tuition wasn’t in the form of loans, can you declare bankruptcy and work out a plan to restart the meter?</p>

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<p>Charliescm, a transcript does not get released “in phases”. That is absurd. And would do no good. </p>

<p>The OP had a payment plan and did not meet it. As to the fact that he now has a child and will be more mature I would point out that he had this same child when all of this occurred.</p>

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<p>I attempted 106 credits, of those credits 79 were acceptable grades towards a degree. This would basically make me a second semester Junior.</p>

<p>Yes, the $20,000 is accruing interest, and yes I have been sending them money as often as possible. To this point my payments have kept the debt from adding any more interest, but I hate the idea of struggling to pay utilities and feed my family just to pay interest on something that is going to ruin my credit reguardless.</p>

<p>The tuition was not in the form of loans, so the bankruptcy idea might just works. The idea of bankruptcy scares me but it would likely be the quickest option to get back in school and back on track.</p>

<p>Thanks for your reply</p>

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<p>I’m not sure declaring bankruptcy will get you those transcripts. You might have to start over, perhaps at a community college (which might not be such a bad idea, anyway–how much did you really learn in those college courses?)</p>

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<p>Cynical was the word I meant to use, not “evil”.</p>

<p>I know I failed, furthermore I know why I failed, and even furthermore I know how I have changed, and why I wouldnt fail again.</p>

<p>The simple fact is paying off debt is a lot easier when you make more money, making more money is a lot easier when you have a college degree.</p>

<p>I do not blame the University for wanting what is owed, but I do think they should re-evaluate their methods of getting it.</p>

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<p>Community College is my goal right now, and I wouldnt mind starting over with a clean template, but from what I’ve read I won’t be accepted anywhere without the transcripts from my University.</p>

<p>Thanks for you reply</p>

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<p>Sounds like he was originally given anticipated financial aid for the first semester, which allowed him to register for the second semester. When he did not clear probation or meet the SAP, he wasn’t able to get the aid and now had to repay both terms.</p>

<p>The problem is even on the off chance that he were to “start anew” somewhere else, he still would not be eligible for any kind of federal aid, because it is going to come up through the national clearing house that he received aid in the pass and did not make SAP (satisfactory academic progress).</p>

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<p>If he owes the school the money, I’m not at all sure that bankruptcy is going to help him get the transcripts. When you buy a car, and then declare bankruptcy, you don’t get to keep the car unless you reaffirm the debt, and keep paying. What’s the university going to do, say “oh, yes, you declared bankruptcy, now here’s your transcript for free”???</p>

<p>He’s not bankrupt.</p>

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<p>Isn’t he bankrupt if he can’t pay back his debts?</p>

<p>I think there are community colleges where you would be able to enroll. Call the local one and ask them.</p>

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<p>Hence the second job, Hunt. Bankruptcy is not an easy way out of his money issues, or even really the quickest given the long term effects. However, if the college accepts credit cards, he could possibly a) get a credit card with a large limit, or several of them b) pay off the college and then c) declare bankruptcy and get his transcripts from the college. I’m not recommending this–I think it is wrong, because I do think he has other options to pay back the debt. But it is a course of action.</p>

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<p>

Paying back such a large debt with a girlfriend and baby on a not-that-great job is a more than daunting task. How long will it be before baby 2 joins his/her sister? In a situation where the ability to better oneself and thus potentially improve the income has been significantly reduced, OP is likely going to be stuck on the bottom of the barrel for a lonnng time, if not for life. There are no good choices here.</p>

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<p>I’m sorry but I don’t buy that. Pick up another job, cut back on luxuries, use birth control. There are ways to earn the money if it is important enough to you. </p>

<p>I worked full-time to myself through school and graduated in 4 years. It can Ben done. If you want it badly enough.</p>