Help to return to college?

Question

I am a disabled older african american (44) who would like financial help going back to college. I took out a student loan 25+ years ago and tried to pay it back when I left school but it got sold and each place told me they did not have it so I forgot about it. Years later I went back to school and got Pell grants so I thought all was good. I got sick and now that I am semi well I want to go back but they now say I owe from my 25+ loan and can not get a Pell Grant, plus they have added a SUPER amount of interest, at least $4000. Any idea how I can get help going back to school?

Answer 1

A student will be denied financial aid (including a Pell Grant) if s/he has an unresolved student loan. So, in order to receive Financial Aid, you will need to get your loan out of default. Your best chance to do this is to "rehabilitate" your loan, which generally entails making a series of on-time, monthly payments (usually 6) to proove that you are responsible borrower.

Keep in mind that the $4K in interest wasn't exactly "added" as a penalty or anything -- it was accrued over years of non-payment... At any time during your repayment, if you were ill or experiencing economic hardship, you could have request a deferment or a forbearance. When you became disabled, your loan company would have undoubtledly helped you make arrangements to defer or lower your monthly payment until you were again able to make payments -- but they can't help you if you don't call them....

Even now, it's not too late to set things straight. It's vitally important that you make arrangements to repay this loan -- even if you don't plan on going back to school, your loan default will remain on your credit report until it is resolved.

If you don't know the name or contact information for the company that holds your loans, you can go to http://www.nslds.ed.gov to look up your loan history. (You will need to apply for PIN number.) This will give you the contact information for the lender and/or the collection agency that has your loan now. Alternatively, you can check your credit report -- the collection agency will undoubtedly be all over it.

Answer 2

There are tons of scholarships that go unclaimed each year. Many $400, $500 or $1000 scholarships never even get applied for because people think it's chump change and not worth applying for. Well, get a few of those $500 scholarships and it'll really make a dent in your tuition bill.

Many people make the mistake of looking for one big scholarship amount, and the fact is that everyone is applying for the big awards. You have a better chance at smaller awards and many awards are not based on academics or sports or major or anything else too specific. You have to research.

Stay away from student loans as much as you can. They really undermine your future when you get out. It took me 7 years to pay back $10,000 in student loans and sometimes my payments were over $400 a month. When you add rent, food, living expenses to that, it becomes almost impossible to live a decent lifestyle as a new graduate earning entry level wages.

Do a search on scholarships, search your major, your ethnic heritage, your town, your parents employers, your employer, hobbies, high school, local chamber of commerce/rotary/ lion's club etc. Left-handed? There is a scholarship out there for you! Older woman returning to school? There are scholarships out there for you. Do combined searches on more than one criteria "hispanic women aviation scholarships" etc.

Go to the library and ask the reference librarian for a reference book on scholarships. They usually have more than one. There are all kinds of scholarships out there, you just have to start applying yourself and make it your summer career to send out letters everyday for scholarships. Good luck!

Answer 3

I'd suggest paying off that 25+ loan first, then try going back to school.