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Hello, I'm in a dilemma and I need to get some advice.
I'm a teacher in a small town. One of my seniors is getting ready to head to college for the first time this fall semester. He will be the first in his family to attempt college. I helped him with his FAFSA earlier in the spring; then, on July 24, I helped him complete the process for his student loan (all this was done with parent approval, of course).
Here is the problem. The school has not received the money yet from the student loan, and they want their money now. He got dropped two days ago because of the non-payment, called me in a panic, and after calling his advisor today, he was re-enrolled. But he was told that if he doesn't sign up for a payment plan through the school by the end of the day, he'd be dropped again. If he's dropped, then the federal student loan would probably not go through because he'd have no expenses this fall.
Adding to the problem, his folks say that they don't have the money to make the first $388 payment. He either finds a way to fork over the cash, or he waits until the spring after he's saved up enough money. He does not have the money yet.
I really want to see this kid succeed. Am I crazy, helpful, doing the right thing by even thinking about helping him out and making his first payment for him? My thinking is, when the loan finally does go through in a couple weeks and he gets his disbursement check, he will be able to pay me back, and everyone will be happy. However, I need to talk to his folks first before going ahead with this. What would you do in this situation? I really need advice, because I'm completely torn.
Something is getting missed between the college and the Fed Loan. I'm really surprised that they are dropping him when fed loan money is coming--which usually isn't applied until Sept or so anyway. I would call them back and find out why they need the money now when he has fed loans coming. I would also check with the fed loan people to make sure they got everything they need. Did he do the online counseling, fill out the Master Promissory note, etc?
Hello, I'm in a dilemma and I need to get some advice.
I'm a teacher in a small town. One of my seniors is getting ready to head to college for the first time this fall semester. He will be the first in his family to attempt college. I helped him with his FAFSA earlier in the spring; then, on July 24, I helped him complete the process for his student loan (all this was done with parent approval, of course).
Here is the problem. The school has not received the money yet from the student loan, and they want their money now. He got dropped two days ago because of the non-payment, called me in a panic, and after calling his advisor today, he was re-enrolled. But he was told that if he doesn't sign up for a payment plan through the school by the end of the day, he'd be dropped again. If he's dropped, then the federal student loan would probably not go through because he'd have no expenses this fall.
Adding to the problem, his folks say that they don't have the money to make the first $388 payment. He either finds a way to fork over the cash, or he waits until the spring after he's saved up enough money. He does not have the money yet.
I really want to see this kid succeed. Am I crazy, helpful, doing the right thing by even thinking about helping him out and making his first payment for him? My thinking is, when the loan finally does go through in a couple weeks and he gets his disbursement check, he will be able to pay me back, and everyone will be happy. However, I need to talk to his folks first before going ahead with this. What would you do in this situation? I really need advice, because I'm completely torn.
I might do it, knowing there is a chance I wouldn't get paid back. However, I'd first call the school directly and see what's going on. That isn't a normal situation - I financed school with loans, and never had a school drop me because the loan hadn't come in. The school didn't need to do that because they actually got the loan before I did, took their cut, and then gave me back the difference. So I can't understand why this school is doing that. I would want to talk to them myself. Also, most schools I've been to have a loan program for small amounts of money. So I might do it, but first I'd call the school and find out what's going on.
Last year when we got our bill the stafford loans were not showing up. My son had not completed the online counseling part that they must do. It's a quick thing. As soon as he did, the loans showed up.
Not only that, but the school should be able to see that the loans are there but just not dispersed yet. At our son's school they are not applied to the bill until 6 days before classes start.
Here is the problem. The school has not received the money yet from the student loan, and they want their money now. He got dropped two days ago because of the non-payment, called me in a panic, and after calling his advisor today, he was re-enrolled. But he was told that if he doesn't sign up for a payment plan through the school by the end of the day, he'd be dropped again. If he's dropped, then the federal student loan would probably not go through because he'd have no expenses this fall.
Adding to the problem, his folks say that they don't have the money to make the first $388 payment. He either finds a way to fork over the cash, or he waits until the spring after he's saved up enough money. He does not have the money yet.
Something isn't passing the sniff test regarding financial aid/bursar. There is ALWAYS churn with students not getting student loan payments when expected-is this a credible school?
Loan it only if you can afford to lose it and it makes you feel good.
I might do it, knowing there is a chance I wouldn't get paid back. However, I'dfirst call the school directly and see what's going on. That isn't a normal situation - I financed school with loans, and never had a school drop me because the loan hadn't come in. The school didn't need to do that because they actually got the loan before I did, took their cut, and then gave me back the difference. So I can't understand why this school is doing that. I would want to talk to them myself. Also, most schools I've been to have a loan program for small amounts of money. So I might do it, but first I'd call the school and find out what's going on.
Since the school can't talk with you directly have the student call and then hand the phone to you.
However, it does seem odd. There was a mix-up once with my daughter's loan and it didn't clear until about the sixth week of classes. The University wasn't hounding her at all for the money. She attended classes as if everything was paid. Her books were also paid for "on credit".
I'm betting that one of the forms or a signature was overlooked.
Do not make the first payment. The fact that they want to drop him without it suggest their financial aid office has no record of him being eligible for loans, which means you will never get your money back.
You helped him with the FAFSA and loan process but did he follow through with the entrance counseling and did he receive anything back from anyone suggesting he was eligible for aid? He should have received something back from the school's financial aid office. As others stated, something is not adding up, on several levels.
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