The school went bankrupt before I finished the course so I got nothing out of it, since it was a radio broadcasting school. They were suppose to help me find employment and make free air tapes for 5 years after I finished, but I never got to finish. But I sent a letter to proper people stating this fact, but they said I had to pay the money back plus all the interest and late charges during the time that I tried to fight it. The school got the pell grant plus the student loan money. I never got any of it. They recieved the checks and turned them over for me to sign. I never saw the front of them. So they got all there money and I got nothing, but a loan that I have been paying on for the last 4 years.
2006-12-05 10:47:19 · 6 answers · asked by dibaby 2 in Education & Reference ➔ Financial Aid
If your loans are federal (e.g. Stafford, Perkins) in some cases your loans CAN be discharged (i.e. the debt will be forgiven). This kind of loan cancellation typically applies to "closed" schools. Does your school still exist? You can find out if it is considered closed by looking it up on the official Dept. of Education website, here: http://wdcrobcolp01.ed.gov/CFAPPS/FSA/closedschool/searchpage.cfm . If your school is listed here, you might be able to have your debt forgiven. You may have to make a few calls, but it could be worth it! To contact the Department of Education Case Team for your state look it up here: http://studentaid.ed.gov/PORTALSWebApp/students/english/closedinfo.jsp?tab=attending
If your school does still exist, you might have a bit of a problem. Technically, when you borrowed the loans, you signed an Entrance Interview form agreeing to the terms of the loan. One of these "terms" was that you agree to repay your loan even if you (a) do not complete the program and/or (b) are dissatisfied with the program.
2006-12-05 12:58:25 · answer #1 · answered by FinAidGrrl 5 · 1⤊ 0⤋
You shouldn't, if it's within 90 days of enrolling. One of the grounds for loan cancellation is that the school closed.
Call the Department of Education's FSA Ombudsman to dispute.
Postal mail
U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144
Phone number
1-877-557-2575
2006-12-05 21:50:07 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is called the Feds get the money back. My wife took a quarter of school but withdrew within the time limit the school never let the Feds know and return the money. 23 years later they want the money and all the interest.
They said since we can't prove she filed the paperwork. (school has closed and we have not kept paperwork from 23 years ago) so we pay as well
2006-12-05 18:58:20 · answer #3 · answered by ML 5 · 1⤊ 0⤋
Because you entered into a contract with the loaning agency to borrow this money and pay it back. If there wasn't a clause in it to release from obligation in case of the school defaulting on their responsibilities, you're on the hook for the money. The loaning agency's agreement was with you, not the school. It's up to you to determine the worthiness of the institution you choose to attend for your schooling.
Sorry, I feel bad for ya, but that seems to be about it.
2006-12-05 18:59:49 · answer #4 · answered by mattzcoz 5 · 1⤊ 0⤋
That sucks dude - but you borrowed money from the Fed Govt, not from the school - and someone has to pay them back...
Id speak to an attorney. If the school went into restructuring backruptcy, they might be required to give you back your money...but dont hold your breath.
Again, that sucks.
2006-12-05 18:55:46 · answer #5 · answered by YDoncha_Blowme 6 · 1⤊ 0⤋
it depends on who your lender was. If it was from the federal gov't, then you need to read their policy. I think they stipulate that. But, it is from a private lender, then you may want to have an attorney review their policy with ya. Or, go to a local law school and ask a third year to review the policy.
2006-12-05 21:07:45 · answer #6 · answered by sunshine23511 5 · 0⤊ 0⤋