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NOT a student loan anymore?

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bilious

Junior Member
What is the name of your state (only U.S. law)? Oklahoma.

I took a fed student loan, but withdrew before the 2 week time limit for having to accept a "w" grade, the college paid the loan to the feds, and now i owe the college 7, at 18%. I never signed off on that, was never warned that it could happen. I thought the originally 6.5k would be rolled into my other 20k of student loans. I"m 62, a junior in college, this will stop all financial aid and I can't go to another college until this debt is settled. I THINK that I can take a bankruptcy on it, am I correct? The college won't take payments. It' going to collections as of 9/18/15. I want to file bankruptcy ASAP. I live on $600 per month SS and $600 per month VA disability. thanks.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Oklahoma.

I took a fed student loan, but withdrew before the 2 week time limit for having to accept a "w" grade, the college paid the loan to the feds, and now i owe the college 7, at 18%. I never signed off on that, was never warned that it could happen. I thought the originally 6.5k would be rolled into my other 20k of student loans. I"m 62, a junior in college, this will stop all financial aid and I can't go to another college until this debt is settled. I THINK that I can take a bankruptcy on it, am I correct? The college won't take payments. It' going to collections as of 9/18/15. I want to file bankruptcy ASAP. I live on $600 per month SS and $600 per month VA disability. thanks.
If you withdrew before the 2 week deadline that should mean that your tuition was refundable...shouldn't it? I know that if you withdraw before the 2 week deadline you do not get any disbursement.
 

bilious

Junior Member
If you withdrew before the 2 week deadline that should mean that your tuition was refundable...shouldn't it? I know that if you withdraw before the 2 week deadline you do not get any disbursement.


tuition is not the issue. the pell grant paid that. The issue is the 6.5k of student loan that I took and I aint got moren' half of it left. they insist on getting the full amount, and I can't do that. payments set up with the collection agency will NOT suffice to let me get more finanacial aid/enroll again. it all has to be paid in full. Bankruptcy will do that.
 

Dave1952

Senior Member
Read your loan documents carefully. Then ask the financial aid office to explain what's going on. I suspect you owe the money.
As for bankruptcy, I'd advise speaking with a lawyer to see whether this loan may be forgiven by a bankruptcy court. There are a number of strategies.
So, where did all the money go?
 

bilious

Junior Member
I've got 4k of it, but they want ALL or nothing.

so they get nothing. I didn't sign on for immediately owing anything, much less at 18%. This is not a normal student loan anymore. I do NOT owe the feds. the college is sending it to COLLECTIONS. they would not need to do that if it was a normal student loan. So the bs about not being able to take bankruptcy vs Fed student loans does not apply.


the money went for normal living expenses. I took out this loan in Jan. I did not get this VA disability increase until last month. I have had no other income but $600 of SS, and prior to last ocober I had no income but the loans. I m 62, as I said.
 
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Zigner

Senior Member, Non-Attorney
so they get nothing. I didn't sign on for immediately owing anything, much less at 18%. This is not a normal student loan anymore. I do NOT owe the feds. the college is sending it to COLLECTIONS. they would not need to do that if it was a normal student loan. So the bs about not being able to take bankruptcy vs Fed student loans does not apply.
I'm sorry, I thought you were here to have questions answered, not to tell everyone here that they're wrong...
 

not2cleverRed

Obvious Observer
Hey, there's a story and a reason for every userid...

I'm all for continuing ed, but senior citizens taking out student loans seems a bit... rash. Seriously - at 22 or 32 it might be worth it, but at 62 those actuarial tables are catching up to you.
 

bilious

Junior Member
Hey, there's a story and a reason for every userid...

I'm all for continuing ed, but senior citizens taking out student loans seems a bit... rash. Seriously - at 22 or 32 it might be worth it, but at 62 those actuarial tables are catching up to you.
Y0u don't know the score, obviously. Once you are 100% disabled as a vet (happens eventually to everyone) your school loans are forgiven. :) VA and SS money is exempt from being attached. So only if you have a job or biz (in your name, not a corporate name) can anyone get anything from you, if that's your setup. Annual average inflation is 5%, so the 5% interest rate on student loans means that you dont really pay any interest.

Hey, when you're wrong, you're wrong. Why put down people for stating the obvious, hmm? I DID say it was about a LOAN, and the guy starts talking about tuition and no disbursement if withdraw "too soon. . If there was no money given to me, there'd be no issue. So there WAS "disbursement", and loans are not about tuition. Pell grants pay tuition, unless you're nuts enough to attend a college that charges more than what the grants will pay.

This isn't about trying to do anything with the college degree. It's about getting back a small fraction of what was stolen from me by the Feds.

A free bankruptcy consultation says that yes, a bankruptcy WiLL get rid of the debt, but the college can and will refuse to let me enroll again and will refuse to send my transcript to any other college. Which is a total crock and defiance of the laws of bankruptcy. It needs to be challenged in court. I"ve got one other arrow in my quiver. Then I take the bankruptcy and blow off the college idea.
 
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bilious

Junior Member
it got paid off by my next loans, got ahold of the Vice prez who know what to do.

I figured all along such was the case, but the pos's at financial aid and biz office kept tellig me that it couldn't be done.
 

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