Student debt went into collections, now what?

Paying for College
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(Reposted from my school’s forum, original thread found here)
http://talk.collegeconfidential.com/university-michigan-ann-arbor/1828269-student-debt-went-into-collections-now-what.html#latest

Okay, so I’ll try to keep this as brief as possible but we’ll see.

Long Version:
I have been studying at University of Michigan for the past four years; I have about 2 semesters to go at Stamps. Last winter my father was diagnosed with stage IV cancer, this really wore me down but I decided to continue on in my studies. My mother suffers from severe bipolar disorder and didn’t handle my dad’s diagnosis too well. It became clear to me that I was needed at home and in addition it was near impossible to focus on my work. In hindsight I’m glad I came home because soon after we had to have my mother committed to a mental hospital, and she went in and out of there every few weeks from February to May. A few months ago she had a valve replacement surgery, and I’ve been acting as caregiver to both her and my father. Okay, enough of the pity party (sorry, sometimes its nice to type) I notified my professors of how I wasn’t going to be returning, but I did not go through an official withdrawal. Admittedly this was a huge mistake, but I thought the only thing that would be affected was my GPA, and quite frankly that was the least of my worries at the time.

Because of my poor academic performance last winter term I was suspended for the current academic year, it seemed unfortunate but again, I was told I didn’t go through the proper channels when leaving school so it fit. Weeks later is when the crushing blow came, I was charged just under $8,000 for the winter semester. My tuition is 100% covered through financial aid and loans, and my parents are unable to help me in any way.

Since the debt has remained unpaid, it has since been transferred to collections and I am unable to return to school next fall term (when the suspension ends). Financial aid has been everything but helpful and I keep running into brick walls wherever I turn.

So after all that, here’s the question: what can I do? My dad is a Vietnam veteran so I’m going to turn to the VA for some advice next week. Surely this isn’t the first time something like this has happened, I wouldn’t turn to the internet for suggestions unless I was desperate, so please, it would be greatly appreciated if we could focus on my future at the U, and not things I could have done differently in the past. :slight_smile:
I greatly appreciate you taking the time to read my post.

Short Version:
I have an unpaid debt with student financial services and am unable to return to the U until it is paid. Does anyone know of lenders that would work with someone in my situation or is there any way I could put the debt into forbearance until I graduate?

Thanks

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See https://studentaid.ed.gov/sa/repay-loans/default/collections

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Is there any kind of student advocacy organization that might be able to help you at the school. Can you go and meet with someone in charge of financial services?

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When do you begin repayment on other loans?

Do you have any older siblings, grandparents, aunts, uncles, who coyld help, or a relationship with a church/pastor?

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@NorthernMom61, I’m not sure exactly, but I’m meeting with the veteran’s rep in my city and he’s going to help me build a little case file of medical documents alongside explanation letters, we’re not sure who to send it to yet but he says he has some friends at the school who could help it get into the right channels

@Madison85, I’ve been paying on my other loans for the past 2 months. I am in the process of getting them deferred but the sub $200 a month payment hasn’t been too hard to make. Unfortunately as an immediate family we’re somewhat loners and I haven’t practiced my religion since grade school.

I am hopeful with the Veterans on my side I’ll sort this out, at least enough where I will be able to return next fall. I’ll still be checking this thread often and I intend to keep it updated to help out anyone else that could be in my situation

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You did the right thing by leaving school to take care of your parents. I’m sorry you’re being punished by the system for doing so.

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I do hope it works out for you. I am glad you found someone who is understanding and trying to help. I hope your parent’s health has at least stabilized.

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I don’t think that’s entirely fair to say. OP, as he admitted, failed to follow proper procedures to withdraw from school–understandable perhaps given the crisis situation he was in, but in no way a punishment by the system. Hopefully some sort of appeal will be successful. And hopefully this will be a cautionary tale for others that managing school debt requires close attention to detail.

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Such a costly and unnecessary error, shame. Please read your student handbook and SAP policies in future to understand and follow. I’m not sure anyone can do anything, you incurred costs by just walking away, and I don’t think you can get fed loans without clearing the payment, but keep following up, maybe someone will have a creative solution.

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Contact the Veteran’s affairs office at your school. Explain the situation to them.

If your Dad was a Vietnam Veteran, there were certain benefits you were supposed to receive, including tuition assistance.

They may be able to intervene to get you back on campus but the debt may still need to be resolved.

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Contact the Ombudsman at UM: https://ombuds.umich.edu/. Explain to them that you feel lost and need their guidance in figuring out what you can do to minimize the impact of what is happening. They may not be able to make things better, but they can help you find the right people to talk to so you can get the advice you need. You have had a lot going on, and you need someone at school to help you sort things out. My best to you.

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@kelsmom that is great! it’s greatly appreciated. 4 years at u of m and I had no idea something like that existed. I’m meeting with my VA rep on Wednesday and first thing tomorrow I’ll call up the ombudsman.

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I have met a number of financial aid staff members at UM, and I know that they want to help students. Sometimes at a large school, it is difficult to navigate things. The VA rep and the Ombudsman will be in a position to help you with that. Let us know how it goes.

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I knew you would get great advise on this forum!
best of luck to you!

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@menloparkmom :slight_smile: Thanks again!

A brief update, I’ve met with my veteran’s rep and I’ve got together a good case of mine, my mothers, and my father’s medical records (I’ve been seeing a psychiatrist since all of this has happened) as well as a timeline I’ve created with diagnosis dates and my last date of attendance etc.

He has plans to send it to multiple people, including a US senator which quite frankly is amazing, but we’re waiting until after next Tuesday (my ombudsman appointment) to see if they can give us any advice in general or as where exactly to send it to. Thanks to all, this board has given me some newfound hope I haven’t felt in over 6 months! I’ll keep you all posted.

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Another update, my meeting with the ombudsman office at school went well, he took note of my case, and I mentioned the possibility of a retroactive withdrawal. He is going to email me when he finds out some more information, but nothing as of late.

I hope everyone has a nice thanksgiving :slight_smile:

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Seek the retroactive, late withdrawal with financial consideration for documented extenuating circumstances. Your financial aid office and your academic adviser should be able to instruct you on how to petition the university for this.