<p>Ok backstory.. Last time I was in school (2003) I left MN and went back home to NM cause my bf and I was getting married. My parents paid off the loan and my board and I left. Well fast forward to 2012 I just found out that supposely I defaulted on a loan but I never once got notice or my parents got notice on.. Anyways now I'm having to use my husbands GI bill to go back to school. Well we got the certificate and I'm getting 100% of it. So why is the school still wanting me to apply for scholarships? Does that money come to me so it can help cover cost for books,etc? Just confused on why they want me to fill out more applications.</p>
<p>If you file the FAFSA, based on your family income you may qualify for certain types of need-based aid that are guaranteed to you by the federal government. Yes, it is possible to receive a Pell Grant, federal work-study, federal loans, etc. even if you also have the GI bill. Go visit the financial aid office, and discuss this situation with them they will be able to explain it to you.</p>
<p>As for that old loan, you and your parents need to look through your records to determine whether or not you even borrowed that money in the first place. Sometimes mix-ups like that occur. If you did borrow the money, then you do need to re-pay it before you can be eligible for any further federal aid.</p>
<p>Good luck with everything!</p>
<p>Today I learned that the IRS took the money out of our tax return to pay that past balance (have no idea why after being out of school for 10 years) but since they took the money and the balance is paid off when can I reapply for FAFSA?</p>
<p>If the bill has been cleared, I believe that you are OK. But it would be a good idea to check with the Fin Aid Office about that.</p>
<p>K I was worried it would take forever for the status to be lifted.</p>
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Really? Past due loan obligations don’t just “disappear” over time. They follow the borrower until they get paid.</p>
<p>Well the first I heard of this loan was when I applied for FAFSA in January 2013… Never once have I EVER been notified that a payment was due. They might “follow the borrower” but doesnt mean they notify them of the debt. Like in my case</p>
<p>Well, clearly, someone dropped the ball on this. With enough research, you could probably figure it out . . . it might have been you, it might have been the school - who knows? And it’s possible you’d discover that the debt collection was error. From the sounds of it, though, the amount was low enough that your only interest is in putting it behind you and moving on.</p>
<p>But, yes, the “why” they followed you is easy to answer. Why you never heard of it before now is something else entirely . . . I guess you should just be grateful they didn’t take more.</p>
<p>Im glad its paid off cause now Im eligable for the full $5500 since my EIC was 00000 and the GI bill is covering 100% of my tuition…</p>