Quote:
Originally Posted by Motts
They say hindsight is 20/20 and that cliche is too true.
I did not take the straight and narrow path in life. Certainly not with academics.
I waited until my late 30s and 40s to go back to school. That means, borrowing financial aid to pay for class and get living expenses via a financial aid refund check.
Last semester, I had two negative collections (old ones) on my credit report. Yet, my application for a private Grad Plus loan was approved without an endorser. Not sure why. Good luck, I thought. Then, when I reapplied for the fall/spring tonight, those same two collections proved my downfall, as this time, my credit was denied. My options? File a credit appeal in the form of paperwork that shows I paid off the two negative, yet very old collections, or, secured an endorser with passible credit.
Knowing this may happen I hired one of those consumer credit agencies who you pay a monthly fee to, so that you don't have to send out letters to the credit agencies challenging collections b/c the company will do that for you. Well, the company successfully got 1 of the 2 collections challenged and removed mid-July. Yet when I checked my credit reports, the DEBT WAS STILL ON IT! And that's how what was used to deny my private loan application for financial aid tonight. I was devastated.
So, I immediately dug up all the paperwork from the company who sent me confirmation of the collections removed etc., in a dispute report on the credit agency's website tonight.
Tomorrow I will call the credit agency and ask their customer service why they didn't remove the collection account two weeks ago like they were supposed to. The timing of that is what screwed up my credit which is actually good now. But good credit score didn't save me from being denied financial aid. So, I'm really stressed out.
If i can't find an endorser with zero collections on their credit report then my only option is to pay those two 10 year old collections (which is a big no-no as far as what that does to the credit report: those debts won't be removed unless the creditor removes them and that's up to the creditor; I can't make them remove it).
I guess, if it comes to it and I pay those two collections anyway, I can send that proof of payment to the private loan lender as proof of payment for an official credit appeal, to get my financial aid approved for fall/spring.
Any ideas, anyone?
What a mess! I've been temping this whole time in school, applying for full time work with zero luck due to Covid-19 (like so many others in my shoes trying to find employment full-time during a pandemic).
I'm selling my car for a few thousand dollars, so I have at least 3 months rent in case I can't appeal the credit or find an endorser with no collections on their credit report. I don't know what other options I would have. What good is a car, unless to live in it, homeless, without resolving my student loan debacle.
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I'm so sorry you are struggling with financial aid issues.
I was in my late-30s when I returned to college. I went first to a community college for an Associate's Degree (earned highest honors and was part of a couple of honor societies), and then transferred with a huge scholarship from an honor society to a four-year university as a Junior. I graduated from the four-year university with Summa Cum Laude status. I tried to do some work as a post-bacc whilst still a disabled person, and my disabilities worsened during my early 40s. I never had support, and people pulled the ageism, racism, and ableism crap on me. So, sadly, I failed at going to grad school. I needed extra help through some sort of rehabilitation that could help me see the nuances that I couldn't. My being disabled most of my adult life meant that my resume and CV were outdated and based on rules of the past, not the present. I wound up seeking help at the VA, and they rated me at 100% disabled - permanent and total. I thought I was dying, as that's not what I was looking for. Subsequently, I got everything forgiven - without having to pay taxes on the forgiven debts. I only had to pay back one private loan comprising $1000. Had I not been forgiven, my base would have amounted to about $40k with $10k average in interest. I think I only owed about $36k at the time my totals were forgiven, save the private loans which are never forgiven, at least from what I understood. I knew then that I would never make that mistake again.
I do wish to return to school, but I'm severely disabled and will only return if VA will pay for voc rehab. That's the only way I can afford it now, apart from whether or not I could even do an assistantship and get a tuition waiver that often comes with.
The most expensive costs from education will be your undergrad education (unless you are attending law school or med school, or some expensive grad school with a terminal Master's degree with a small tuition waiver or no tuition waiver at all). For these reasons, my suggestion would be to find scholarships that total most or at least half of your undergrad tuition. Keep searching for scholarships!!! There might also be scholarships to help pay off your student loan debts, with certain caveats like working in the public sector or for the government or something. Keep searching for scholarships while you're still in school.
Also, if you plan on going to grad school, seek out tuition waivers and assistantships. Both will help you live and eat while attending grad school full-time, and tuition waivers mean less debt. Also, still apply for scholarships on top of all of that. You may be taxed for those things, but it will be less than what you'd owe in loans. If you are seeking a PhD program or a program that is mixed with PhD, such as JD/PhD or MD/PhD, seek out full-ride tuition waivers first, then have your second choices be at least 50% tuition waivers. Make sure that you can still live off your assistantships while also paying a small amount to any private loans. And, as always, seek out scholarships.
You could also take a sabbatical from academia to find a high-paying job that will help you pay off your student loans. Instead of borrowing from Peter (debt consolidator) to pay Paul (original loans/debts), try seeking higher wages. I know that's hard in this day and age, but if your industry calls for more higher-skilled workers, such companies might invest in you.
Ask professors, department heads, and other scholars and post-docs for their expertise and assistance. Ask financial aid for their assistance as well. You'll find more people willing to help you with those endeavors than those who will frown upon you.
If you've ever defaulted, ask what you can do to rebuild your credit. Your credit score is everything in this day an age. It means where you can live, what you can buy, what credit cards and interest rates you will be awarded and privileged with, and sometimes what jobs and social networks you will be accepted into.
If you continue in school, some of your college debts could be on hold until you graduate with a higher degree, such as a professional degree (JD, MD, etc.) or a doctoral degree (Psy.D., Ph.D., etc.). That way, their chances of being repaid will be higher because your degree would essentially (or theoretically) mean higher wages (but not necessarily).
Whatever you can do to lower your living costs (like living with roommates, living on a strict budget) while increasing your repayments will help you in the long run!