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want to go back to school, cant get loans

martyezmartyez Posts: 2Registered User New Member
I dropped out of school over 2 years ago, it involved a girl, parents, depression and other reasons. I managed to get a decent job for a website that is about to get sold out and I am going to lose my job. I want to go back to finish my computer science degree.

The problem is that it does not look like I will be able to get Stafford loans as I am still considered to be ineligible for loans from when I dropped out 2 years ago. I have been accepted back into school and they tell me I can be re-evaluated after I return but I probably wouldn't get money for the first semester. I have some money but not nearly enough.

I am sending in my FA appeal but have no idea if it will be accepted. Anyone know where I should look if I can't get Stafford loans?
Post edited by martyez on

Replies to: want to go back to school, cant get loans

  • BedouinBedouin Posts: 423- Member
    You might want to consider going to your bank or credit union for private loans. A lot of people don't know this, but often the interest rates can be as low as or even much higher than that of government loans, and the benefit is that you won' t have to start paying them back until you graduate. You can obtain a loan for the full amount of your cost of attendance, even if you already have alternate sources of funding, and use the low-interest or free money essentially for anything that you might need (incidentals like transportation, commerce, housing, etc.) above and beyond the fees charged directly by the school. Normally I wouldn't recommend that for younger students since they don't really understand what a private loan entails (interest accumulation, repayments, captialization, amortization) but for an adult it might be the bestoption available.
  • thumper1thumper1 Posts: 35,836Registered User Senior Member
    Bedouin...are you a loan administrator? I'm sorry, but I do not agree with you re: private loans. First...many DO need to be paid back well before the student graduates. Second, for a person with no job and little collaterol, the interest rates could end up being quite high...if the person even qualifies for a loan. The acid test these days for private loans is employment.

    OP...do talk to your financial aid advisor at your college. Are you able to pay the first term bills...with a guarantee of getting those Staffords the next term? Find out. Are your parents willing to help you out?
    lot of people don't know this, but often the interest rates can be as low as or even much higher than that of government loans, and the benefit is that you won' t have to start paying them back until you graduate.

    Please explain "interest rates can be as low as or even much HIGHER than government loans"....what do you mean. Why would someone want to pursue a loan with a much HIGHER interest rate than a government loan.

    And...what private loans don't make you pay back until AFTER you graduate?
  • mazewanderermazewanderer Posts: 1,399Registered User Senior Member
    OP: Please talk your school as suggested by Thumper.

    I would not advice anyone to take student loans for anything but the stated purpose.
    if you already have alternate sources of funding, and use the low-interest or free money essentially for anything that you might need (incidentals like transportation, commerce, housing, etc.) above and beyond the fees charged directly by the school.

    The question here is that the OP does not have alternate funding, cannot get Stafford loans which are among the cheapest, so how is he going to get low interest or free money? May be I don't understand what Bedouin is proposing?
  • sk8rmomsk8rmom Posts: 5,746Registered User Senior Member
    ^^ A mystery to us all...I agree that student loans come with restrictions and should not be used for other purposes. Also, private student loans are never "free money" as there is no interest subsidy.

    OP, why are you ineligible for federal loans? Is there an issue with SAP?
  • kelsmomkelsmom Posts: 12,506Super Moderator Senior Member
    Sounds like SAP ... due to dropping out. Definitely file a financial aid appeal. Explain what happened that led to your dropping out, as well as what steps you have taken in your life that will show that you should have a second chance for aid. If the appeal is denied, you would have to pay out of pocket & your performance in school will be reviewed to see if you qualify for aid at that point. Every school has its own SAP policy, so do make sure you speak with someone in the aid office who is very knowledgeable about the policy.
  • jujubee2000jujubee2000 Posts: 4Registered User New Member
    Are you unable to get financial aid because of your GPA being too low/sap issues? If so, you could always try going to another school. Your gpa restarts at a new school and a new school may approve financial aid for you now rather than you having to pay until your GPA meets the SAP requirements. some ppl may not agree with this being okay, but the truth is plenty of college goers have done it.
  • martyezmartyez Posts: 2Registered User New Member
    Thanks for the advice everyone. To answer some of your questions, loans were not offered due to my GPA and I do not have anyone that can help me financially other than what I have saved myself. I have sent in my appeal and it does not look like it will be accepted. I am going to look into Bedouin's advise to see if I can get a guarantee for Staffords if I perform well. However it looks like I will still need some aid for the first semester.
  • cptofthehousecptofthehouse Posts: 24,318Registered User Senior Member
    Find out exactly why you are not eligible for the Stafford loans and what you need to get eligibility for them. You may have to take a class or two that you pay yourself before regaining eligibility. Yes, you may be able to take other loans, and you certainly can look into those alternatives. However you pay those courses necessary to redeem yourself is something you need to discuss with financial aid office at your college of choice.
  • momofthreeboysmomofthreeboys Posts: 11,385Registered User Senior Member
    OP, if you are going to loose your job check with your state unemployment agency. Some states have funding or programs for unemployed workers who wish to return to school and most particularly if they want to learn additional skills that theoretically will make you more "employable" these programs could be administered by different offices but your state's unemployment office should have information to pass on. If you are in a low unemployment state you might be SOL, but if your state has high unemployment you might get lucky.
  • BedouinBedouin Posts: 423- Member
    try working at a CC if GPA is a problen
  • sk8rmomsk8rmom Posts: 5,746Registered User Senior Member
    Figure out the number of credits you'll need to achieve that SAP standards...the school should be able to help you with this or you can use a gpa calculator. You can then investigate whether taking those credits over the summer via an inexpensive CC, online course, etc. that will transfer to the school before fall semester is an option.
  • jujubee2000jujubee2000 Posts: 4Registered User New Member
    The only thing about trying to take the classes at a community college and then transfer to meet sap requirements, is that this usually wont work. When you transfer credits the university doesn't count it toward GPA it only gives you the credit toward your degree. I was in this situation when i was 18 after my first year of college I basically funked out, but didn't have any financial help to correct my mistake. I went to a different college period and was able to get aid because the GPA restarts.... However, I made sure I never repeated my mistake ever ever again.

    I agree with checking out the unemployment services in your area. I know where I live you can get about $2500 for classes through an org named job zone/ opportunity inc.
  • sk8rmomsk8rmom Posts: 5,746Registered User Senior Member
    ^ But in the OP's case, all of the credits would be transfer credits so this may be an option. The college will have a GPA on record, just not for that school. But he only needs to have successfully completed a certain number of credits in order to be eligible for federal student aid.
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