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Exhausted all Sources for Loans to Finish Undergrad

Will246Will246 Registered User Posts: 7 New Member
edited September 2013 in Financial Aid & Scholarships
I've got a client who needs about $5,000 to pay the final bill for undergrad so she can get her degree. I am at a dead end to help. She is 27, so qualifies as an independent. She finished her classes this summer, and is done with school but can't receive her degree until she pays her balance due. She wants to continue to law school. She already maxed out her independent loan for the year at $12,500. The school says the summer term goes with the 2012-2013 school year so there is no money left to borrow. There is still plenty of room left on her lifetime loan limit for independents (current loan balance is about $35,000). If she had only waited until the fall to complete her school I guess we wouldn't have a problem.

Her parents filed bankruptcy within the last year so they won't qualify for a PLUS loan (not sure if she can even get a parent PLUS loan since she is independent?). She had 3 outside family members try to co-sign on a student loan through Wells Fargo, Sallie Mae and another bank - all got turned down - family finances don't seem to be very strong. Her credit is about 640-650 and she owns her home, but it is new and no equity built up yet.

Any ideas for a source of funds to release her transcripts?
Post edited by Will246 on

Replies to: Exhausted all Sources for Loans to Finish Undergrad

  • mom2collegekidsmom2collegekids Registered User Posts: 79,113 Senior Member
    She owns her own home? Can she rent out a bedroom or two to bring in some money?
  • 3bm1033bm103 Registered User Posts: 4,161 Senior Member
    Or a Home Equity line of credit?
  • 4kidsdad4kidsdad Registered User Posts: 4,581 Senior Member
    she owns her home, but it is new and no equity built up yet.
    Who pay her mortgage?
  • brendank21brendank21 Registered User Posts: 230 Junior Member
    Can she get a credit card with that amount? I know that is not ideal but it may be the easiest.
  • happymomof1happymomof1 Registered User Posts: 24,163 Senior Member
    She needs to put law school on hold for a year or two, set up a payment plan at her undergrad college, and get this balance paid off. Depending on her current income potential, and her lifestyle, she might even be able to smack it down before her student loans begin to come due.
  • thumper1thumper1 Registered User Posts: 55,142 Senior Member
    Good for her for buying a house...but I have to wonder why her college bills were not paid first...or did she already own the house before going back to college.
  • mom2collegekidsmom2collegekids Registered User Posts: 79,113 Senior Member

    It sounds like the house-buying was done before this last summer's classes...which is the cause of the problem. it sounds like the student was anxious to graduate this summer and paid little/no attention to HOW those summer classes would get paid...just assumed a loan would do it. Sounds like she didn't communicate with the FA office FIRST to make sure funding was in place.

    She needs to get that loan paid off. There are only a few options: 1) work another job and put the funds towards the loan. 2) take in a boarder or two to bring in more money. 3) get a 0% interest 12 month credit card and pay it off within 12 months.

    If she's employed, does her employer offer any tuition reimbursement? Many good-sized companies do.
  • arabrabarabrab Registered User Posts: 5,913 Senior Member
    Deliver pizza. Seriously. If she's in an area with a college, pizza delivery is a great way to earn extra money.

    (And, if she's in debt from undergraduate I'd really question any decision to head into law school anytime soon. That's just likely to result in a much bigger pile of debt, and job opportunities in law are increasingly scarce.)
  • thumper1thumper1 Registered User Posts: 55,142 Senior Member
    If she owns a house, she needs a job.
  • Will246Will246 Registered User Posts: 7 New Member
    She pays her own mortgage, but not enough left over from her job to pay the loan. I don't know the history of when or why the home was purchased, I have only had an initial consultation with her. The equity line of credit is a good idea - I will check to see if she has any equity built up yet and if her credit will support qualification for a loan.

    A credit card is probably not a good idea since she is barely meeting her living expenses right now. Taking off for a few months to pay off the debt may be the only option. Employer reimbursement is also a good idea to check on.

    Has anyone had any experience to get a college to qualify a summer session as the first part of a school year instead of the tail end of the school year? Can they do this as a professional judgement or is not not allowed by FAFSA rules?
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