Possible financial aid emergency, any advice? (I'm panicking!)

Paying for College
1

Hi everyone, I’m hoping maybe I can get some insight on my current situation.

A few days ago, I received a billing statement for nearly $5,000. This was rather alarming, since my financial aid/loans were supposed to cover everything and I wasn’t supposed to start being billed until six months after graduation – not less than two months into my freshman year.

I had thought all my financial stuff was sorted out, but I did some research and two things came to light: 1- I had some loan counseling forms I hadn’t filled out, so of course I completed them immediately. 2- I found out just yesterday that my Parent PLUS loan was denied due to “adverse credit history”. I assume this is because my parents’ house was nearly foreclosed upon last winter.

I emailed financial aid, and they said that since my parents’ loan was denied I’m eligible to take out an additional ~$2,000 per semester, so once they open again on Monday I’m going in to deal with all of that.

Obviously, financial aid will explain everything to me and hopefully get things worked out, but I can’t help but feel anxious all weekend. I’ve heard horror stories of people being kicked out of college due to financial stuff, so my stomach has been hurting the past 24 hours because I’m scared that’ll happen to me.

Do you think I’m going to be kicked out of college over this, or do you think since I completed my loan counseling and I’m going into the office on Monday things will be sorted out? A lot of people have told me that it should be okay, as they deal with this sort of thing frequently, and that they’ll try everything they can to keep me in since they want money, but I am legitimately terrified.

If anyone can offer some insight into what you think may happen, good or bad, please let me know so I can at least stop agonizing over it. (If you need more information, feel free to ask-- I’m totally on edge right now, so there’s a chance I could have forgotten part of the story.)

2

Your parents’ plus loan was denied so that means that the government can loan you an additional $4k. This is a loan that you will need to repay. It is NOT free money but keeps you in school.

No, they won’t kick you out unless you owe an insane amount of money.

3

Is the billing statement you received for just the fall semester?

How much were your parents trying to take in the PLUS loan?

You will be eligible for an additional $2000 in direct student loan money to you because your parents PLUS loan was denied.

What is your total cost of attendance each year? How much is covered with grants, scholarships, loans? Are you/ your family paying anything out of pocket?

4

As far as I know, yes, the statement I received is just for the fall semester. My parents were trying to take out $3,690 per semester/$7,380 per year as this is what was offered to me. I never thought it would be denied since they offered it to me, and I guess my parents didn’t look much into it either?

My total COA is about $20,000 per year, and I have $9,120 covered in grants and scholarships. The rest of the cost was offered to me in loans. We are not paying anything out of pocket, as we really cannot afford to do so, though when I meet with financial aid on Monday we’ll see how that goes.

Also, not sure if this is important, but I wanted to get a work study job that would help with my tuition. However, I receive the Pell grant which makes me ineligible to do so, and I tried to get an off-campus job, but my cell phone is shut off as neither my parents nor myself could afford to pay it this month so no potential employers can contact me. So I don’t even have a way to start making payments/work it off.

5

So…you have $9120 in grants and scholarships…and $6500 in Direct Loans PLUS an additional $4000 in Direct Loans (get that all straightened out when you talk to financial aid)…right?

Does that cover your full cost of attendance?

Hoping you have a job to cover books, and personal expenses.

6

OP – If you received a bill for nearly $5,000 for the fall semester, and the denial of your Parent PLUS loans enables you to take out an additional $2,000 in loans, how do you plan to make up the $3,000 difference that is due this semester? And the $3,000 spring semester shortfall? I did read your response about job hunting, btw, but a part-time student job isn’t going to produce a net income of $6,000 during the remainder of this school year.

7

As far as I know, there is no government rule that says a Pell recipient is ineligible for a work study job, and I can’t imagine that any school would have such a rule.

8

There isn’t one. Most pell students get work study.

9

Either the student misunderstood the info he/she was told about W/S, or the school has somehow decided that those who don’t qualify for Pell will get all the w/s money???

10

My son gets a small Pell grant. He qualifies for Work Study because of it, but if no jobs are available or the money runs out before he’s awarded a grant for it he won’t get one that semester.

11

FWS should be targeted at those with the highest financial need - if a school says no FWS for Pell students, they should rethink that policy (just my opinion).

Here are the reasons people are denied PLUS loans: https://studentaid.ed.gov/sa/sites/default/files/plus-adverse-credit.pdf . You may want to have your parents call Direct Loans to find out why their credit was denied: Contact Applicant Services at 1-800-557-7394 between 8a to 8p, Monday through Friday. If it is an outstanding debt, and if they can find a way to pay it off or make satisfactory payment arrangements to bring the debt current, they may be able to appeal & possibly have their credit decision overturned. It’s worth looking into.

12

@morganjayde Can you ask your roommate or a friend to let you use their phone number so you can get a job. Either that or simply return to the place of employment to see if they have considered you. Not everyone has a cell phone. Or get a cheapy phone from Target and just prepay for a short time.

13

@NerdMom88 That is not correct. OP has 9k in grants and scholarships. His Pell $5500 and now 4 k in direct loans. He is short less than 2k for the year because the COA is 29k