<p>My friend has a problem with her student loan. She went to a community college and took out a loan for her first year. However, she took a semester off and without letting her know the loan office and the community college counselor led her to becoming a default loan. And now she wants to transfer but she can't because of this default loan and she can't pay for it all right now. So I was wondering what she should do to get money because she can't get any money from the government.</p>
<p>She needs to start with a visit to the financial aid office at her old CC, and find out if there were any errors in the record. If the record is accurate, and she owes this money, she needs to get a job and pay down her loan. College can wait.</p>
<p>She told them and they said they dont have anything to do with it because she borrowed from the government. And they said, she didn’t owe them anything because she was still in school.</p>
<p>The terms of the loan were spelled out in the master promissory note your friend signed, as well as in her entrance counseling … and she would have received a loan disclosure with the info, as well. Federal loans become due 6 months after a student graduates, leaves school, or drops below half time. It is the student’s responsibility to let his/her servicer know the correct address, at the start & any time it changes. The servicer would have sent the student info regarding repayment … either this student received it and ignored it, or she did not provide Direct Loans or the servicer with a correct address.</p>
<p>If it was a Perkins loan, which is through the school, the same thing as above applies … except that it is the school, not Direct Loans.</p>
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Student direct loans automatically go into repayment 6 months after a student graduates or drops below half time enrollment. This would have been spelled out in great detail when your friend did her loan counseling.</p>