Transcript Held Hostage!

<p>I attended Kennesaw State University from August 2009-December 2012. I was awarded Federal Student Loans for the 2012-13 school year, but ultimately decided to discontinue taking courses after the Fall Semester 2012 due to work and personal issues at the time, so I did not sign up for any classes in Spring 2013.</p>

<p>I decided to try to go back to school and attempt to enroll in a program at a local community college for Spring 2014, but when I went to request my transcript from KSU, they said I owed them money and my transcript was held until it was paid. When I looked at my student account with KSU, it showed that they dispersed a Federal Subsidized Loan to my account. But that was it. It was essentially a payment on the account, and when there's funds left over from loans, KSU sends it to their branded student checking account that they require all students to sign up for. It was never sent to that account (which will forward that money via check if you choose not to use the account), so I never received the money. I never even knew about the money (granted, I did forget a loan was supposed to be disbursed for $687 for the Spring Semester 2013, which was my error). But instead of KSU either sending me the money, or sending the money back from the loan distributor, they just said I owe them that money. I didn't know about it. I didn't receive the money. They sent communications to my parents house (I hadn't lived there in about 2 years) and to my student email account--which I obviously didn't check given I was no longer enrolled at the institution. They never tried to call (which I know they have my cell phone number on file). Nothing. And before I even knew about the money in that account, they sent the account to collections, but will continue to hold my transcript until they are paid.</p>

<p>Its also apparently accruing interest...I'm not sure what to do! They were supposed to give me that money, but they never did, so why are they saying that I owe that money when they owe that money either to me or to the government? Is there any way I can dispute this? I'm at a loss at what to do...am I incorrect in thinking that I don't owe them anything? Or did they just overlook this loan and the fact that it didn't pay for anything and instead of sending it back, they're making me pay for the interest they owe? I'm so confused...</p>

<p>Unfortunately not enrolling in classes, and formally withdrawing from the university are two different things. I think you should call there and ask them what to do.</p>

<p><a href=“http://ksuweb.kennesaw.edu/~jlaval/spring2014/wai.pdf”>http://ksuweb.kennesaw.edu/~jlaval/spring2014/wai.pdf&lt;/a&gt;&lt;/p&gt;