Post # 1
Member
4605 posts
Honey bee
The community college that I attend does not accept any form of federal loans which is how I’d been paying for school for the previous two years. This was frustrating, but I had to deal. My parents were kind enough to pay for my classes this semester while I was applying for a loan with a bank. I had gotten everything set up, got a cosigner and everything and I was just waiting to get accepted. I thought I was doing well because despite the high interest rates attached to the this loan, because it was still a student loan, I had 6 months after graduation to start paying it back. Meaning I would probably have a job and actually be able to pay it back. Today, the bank calls me and tells me they can’t process my loan because my school won’t accept it! They told me that since the money still technically went through the school and because they no longer had a relationship with the school I attended, there was nothing they could do. They recommended me talking to someone in the financial aide office and asking if I said that I attended the main campus, if the money would still make it to me and if not, that I should ask them what sort of financial aide they would accept. The thing is, my college IS the main campus and the only type of loan I feel they would accept is an unsubsidized loan which I would have to start paying immediately.
I am just so frustrated. I quit my job because I was failing my classes because I had no time to study and they I also have clinicals for 8 hours a day three days a week. I feel like I have to make a choice between going back to work and failing, starving or applying for another loan that I will never be able to pay back.
I know there’s nothing I can do, but it feels good to vent about it.
Post # 3
Member
3682 posts
Sugar bee
Can you apply for a private loan through Sallie Mae? I think you can defer payment until after you graduate.
https://www.salliemae.com/student-loans/
Post # 4
Member
4605 posts
Honey bee
@strawbabies: Sallie Mae has screwed over almost everyone I know that has gotten a loan through them, which I why I avoided them in the first place.
Post # 5
Member
148 posts
Blushing bee
@SouthernGirl: I just wanted to clarify something for you. A subsidized loan doesn’t necessarily mean you pay it back immediately; it just accrues interest from the start. I had a couple unsubsidized student loans from college, and I still don’t have to pay them back yet. The fact that they gained interest while I was still in school kinda stinks, but it only amounted to a few hundred dollars.
That situation doesn’t sound very unfortunate though. I think it’s really lame of your school to be so unwilling to accept the loans. I mean, money is money, right? I hope you get it worked out!
And for what it’s worth, I had my student loans through Sallie Mae, and so far I have no complaints. They seem pretty happy to be taking any check I write to them.
Post # 6
Member
3967 posts
Honey bee
I realize you can’t just switch, but can I ask why you’re going to school where you can’t get federal loans? Private loans can have variable interest rates and really screw you over. Are there any other options for school?
Post # 7
Member
4605 posts
Honey bee
@love108: It was my understanding, and it was still listed on the school website when I applied, that federal loans were accepted. When I got into the school, I found out otherwise. I’m at the school because lots of things happened over the last two years and I ended up in this city with really no other choice for a college education.
@MrNavidson: Oh I know. I was trying to avoid interest accruing immediately. I already have $25,000 in other loans waiting for me. If I started getting interest now, I’d probably end up having to default and I already know how bad that can be for you.
Post # 8
Member
3967 posts
Honey bee
@SouthernGirl: For some reasom I just assumed accreditated schools had to accept federal money. Have you verified anything with the student loan government site? Because it just sounds fishy to me (how the school is handling it).
Post # 9
Member
4605 posts
Honey bee
@love108: I thought so. The only thing I’ve gotten from anyone at the school is that they didn’t want students to default on their loans. The school would get the money regardless, but that’s the way the are. That’s why I applied for a loan through a bank, which is a private loan. I’m still not sure why they won’t take it or what the issue is. I was under the impression that if you got a private student loan, the money went to you and not through the school then to you. I intend to speak with someone else at the bank and at the school tomorrow, because this whole thing seems ridiculous.
Post # 10
Member
3967 posts
Honey bee
@SouthernGirl: I would definitely try to get ahold of someone at the student loan gov site because I didn’t realize a school could deny a federal loan… Private loans are really really risky business! I hope you figure it out!
Post # 11
Member
328 posts
Helper bee
I would verify that this is an accredited school. I agree with others who say that sounds fishy. If it’s not, I’d transfer to a different (accredited) school immediately, even if it means taking classes online if you’re further away.
As another poster said, an unsubsidized loan shouldn’t mean you have to pay it back immediately. All it means is that you are accruing interest immediately, whereas with subsidized loans the accrual doesn’t start until you graduate. This should be a relatively small amount of money and I wouldn’t worry about the interest putting you into default.
If you are only approved by the school for unsubsidized loans it may have nothing to do with them. In undergrad, I was ONLY eligible for an unsubsidized loan because my parents made too much money according to FAFSA. Perhaps that’s your situation too? When I was in grad school I was on my own, so I was eligible to take out a subsidized loan.
Post # 12
Member
3682 posts
Sugar bee
@SouthernGirl: I have a loan through Sallie Mae from when I was taking flying lessons. They haven’t screwed me over.