Up a creek...

Paying for College
1

<p>I went to a college and received an associate's degree (liberal studies, whatever that is). I graduated with honors and went on to another (very competitive) school for my Bachelor's in biology. I probably wouldn't have graduated with honors, but I wasn't doing badly by any means. I was working on my thesis, which was coming along nicely.</p>

<p>Problems showed up when the government cut the loans it was willing to give me by about 2/3. So I had to take out a private loan. During my final semester (Fall 2007) we were in the height of our economic downturn for the US and I couldn't get ANY private loans. Since I was right in the middle of my thesis work and so close (I had my thesis and one more class required for the degree). The financial aid office assured me that I could sign a promissary note for the $14,500 dollars I owed to them at that point.</p>

<p>I ended the (very stressful) semester and was told I would not receive a degree until I had paid the amount in full. I couldn't get any loans (even with a cosigner). To this day I am confused by this since I had never defaulted on any debt, paid all bills on time, and didn't even have any credit card debt.
Anyway, they sent notices for me to pay the debt, in full, immediately. They refused to speak with me except to recommend that I pay the debt in full. They refused to set up a payment plan. After a few months of me trying to get loans or set up a payment plan with them they gave the amount over to a collection agency. They had apparently been charging 17% interest on the amount that entire time, and added another $5,000 dollars on top of it for a 'collection fee'. </p>

<p>Needless to say, the refuse to give me my degree or transcripts. I have talked to everyone in the financial aid department, etc. at the school who just tells me to pay off the debt. Obviously without my transcripts and degree I can't get into graduate school or get a degree at another school.</p>

<p>After years of having bad jobs and getting laid off repeatedly (businesses went bankrupt/temporary work, etc) I am living in a terrible neighborhood, unemployed, have no car or valuables, am receiving food stamps (one problem solved I guess) and may soon become homeless because of just having no money.</p>

<p>I just worked out a payment plan with the loan company of $200 dollars a month in August (it literally took them that long to accept any payment plan other than "pay everything now"). So I still have my other student loans to deal with (at least these can be deferred) and have been giving every dime I have to this debt. Still, I calculate how long it will take me to pay off this debt and I will be 40 years old (I'm 24 now). If I can manage to make the payments! I don't want to wait until I'm 40 to go to graduate school.</p>

<p>Has anyone been in a situation like this? Is there some way I can get into graduate school and get my life back on track? I don't even know what I did wrong besides going for higher education. I can't imagine a graduate school accepting someone without a degree or at least transcripts showing all the work. Should I just try for another bachelor's? At least I have the associate's (which has proven worthless in getting a job) and the transcripts from that.</p>

<p>I am worried about accumulating more debt or another not-degree that I have still done all of the work for.</p>

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<p>Unfortunately you would not get aid for a second bachelors, so that probably would not work.</p>

<p>Schools have you between a rock and a hard place when you owe them money. Just reading here, it seems clear they don’t make exceptions and you have to pay in full to get a transcript released. </p>

<p>A grad school will know they may not get their money if your college didn’t, I can’t imagine you’d get more loans when you haven’t been paying on you present ones…it just seems unlikely you have any choice but to get the school paid unfortunately.</p>

<p>No easy answers here. You are college educated so there should be options
. What about a live in child or elderly care provider so room and board are paid and most of your funds can go to repaying the school?</p>

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<p>I’m baffled by this statement…why were your government loans reduced? Did you hit the ceiling on Stafford loans for undergrads?</p>

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<p>Did you read the note and do you still have a copy of it? What was the date that it became due? These notes are generally very short-term debt instruments and that should have been plainly stated. If not, I believe you have certain rights…as far as I know, this type of debt is NOT the same thing as a student loan. You probably should consult with an attorney - it may not get you your degree from them any quicker, but if you do have some leverage here, it possibly could get the collection agency to do some real negotiating, such as removing fees/interest charges, and/or get the school to accept a smaller amount.</p>

<p>This is a bad situation, but just keep chipping away at it and look for any opportunity to reduce the debt quicker. I would really think long and hard before accumulating any more debt for grad school and would make sure to look for funded programs in a field that will offer real employment opportunities.</p>