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Back in 2010 I dropped out in the middle of spring semester from a community college in MN because of medical reasons. At the time I was on a pell grant, so I guess the pell grant took the money back and the school I was going to says I owe them $2700 before they will release my transcripts. I also get letters from the minnesota department of revenue for this money I owe.
Since I cannot afford to pay back the money and I am disabled so I cannot work, I have been looking to see if I can enroll in other schools so that I can then get financial aid from them and use the money not used for tuition to pay back the other school, get my transcripts and start over.
It was hard to find a school that would take me with a hold on my transcripts but I found one that will and they said they have seen students in this situation before and it will work out but I am scared because one school I called before this one told me I wouldn't be able to get financial aid and no school would take me until the other debt was paid off.
I have filled out my fafsa though and it says that my EFC is 0 and I am eligible for 5,500 grants and 9,500 loans, so did this lady just not know what she was talking about? My question is will I be able to get FAFSA grants and loans despite this other school having a financial hold on my transcripts?