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Have $10K in debt owed to university from 2016... where can I get a personal loan to pay it off?

SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
I went to college for several years between fall 2012 & fall 2016, & I was very close to graduating & earning my bachelor's degree (like only 6 credits). But during my last year I was attending, I was "randomly" selected for verification for my info I put on my FAFSA application for my financial aid, and since I was 22 at the time, they needed my parents' tax information. Well, they wouldn't accept my dad's accountant's documentation and would only accept official transcripts from the IRS, but for whatever reason, they were never mailed correctly and he couldn't get them, despite the fact that he called 3x to get them to send it. Because of this, my financial aid was not approved, and I was stuck with a $8K bill I couldn't pay, it was immediately sent to collections, & the agency tacked on $2K.

So between 2017 & now, I've been pretty much working for a living and living paycheck to paycheck. I also got into a monthly payment plan with the collections agency, and I've been making on-time monthly payments ever since. At the beginning of the year, I tried to re-enroll into that university to finish my degree, but they told me that I can't until the balance is paid in full. Then I recently moved & tried to attend another university, but I was told that my transcripts will not transfer until the balance is paid in full.

So basically in order to go back to school to finish my degree without having to start over & have all that time/money in student loan debt not be a total waste, I have to pay off this debt ASAP.

The problem is... everywhere I apply keeps denying me a loan. I've applied to SallieMae, Discover, my bank, & several online lenders. My credit score is around the 650 to 680 range, but my credit history isn't long or extensive anyway. I also recently took out an auto loan for a new used car for $11K earlier this year because my old car crapped out, so that definitely affects my debt-to-income ratio. Before taxes, I bring in about $30,000/year, as I am a courier who works for an independent contractor at the local Amazon delivery station at $15.75/hour. My rent is also dirt cheap and I only pay like $197.50 a month, as I live in a cheap, small studio apt. for $395/month & have a roommate to split costs (we live in a rural area of the Southeast near a relatively large metro area). Other than that, I don't really have a whole lot of bills other than typical stuff (utilities, Wi-Fi, phone, insurance, etc.).

The vast majority of my jobs since I've not been in college have been jobs that don't require much skill, training, or especially education to do (such as food service & transportation), but I'm personally sick & tired of having to work jobs that expose me to harsh elements (such as a hot kitchen or having to be out in the heat/cold with Amazon delivery, etc.) and would like to have a job in the field I love or something similar. But in order to do that, I MUST get my degree so I can start building my career. But in order to do _that_, I need to get this balance taken care of. But where can I get approved for a $15K loan? I need $10K to take care of the balance and likely around $5K extra just in case the financial aid I would get for enrolling in the new school & submitting a FAFSA isn't enough (which is not unlikely, given that the tuition seems to be a bit higher than the previous college I attended) and then risk being in a bad situation I'm already in & trying to get out of.

If anyone knows of places I can get approved pretty easily for a loan that amount or close to it with my credit score range, debt-to-income ratio, & income, please let me know. Any more knowledge on this subject is greatly appreciated. Thanks.
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Replies to: Have $10K in debt owed to university from 2016... where can I get a personal loan to pay it off?

  • thumper1thumper1 75471 replies3310 threads Senior Member
    My suggestion...get a second part time job and dedicate the entire earning to your loan repayment.

    Will your parents not help at all?
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  • Tigerwife92Tigerwife92 43 replies0 threads Junior Member
    edited November 30
    @SlicedHumblePie I know this is going to sound harsh; I was in your position in my early 20s. You don't have a loan/credit rating problem; you have an income problem. Just my opinion, but you're looking at this the wrong way. There is no easy path out of debt. How I got out as a 20 something: I worked 3 jobs; 1st shift at a factory, another part time job at night (I did commission retail Mon-Thurs evenings and Saturdays and Sundays during the day), and yet another job on weekend nights (tip job). Luckily, you're in your mid 20s and presumably healthy, so you can survive 80 hour work weeks for 18 months. I'll be honest; it sucks, but if you bust your butt for the next 12 months you can get out from under your debt; do it for another 6 months after that and you can pay for the other credits without a loan. Live bare bones for the next 18 months, no drinks, no eating out, no coffees, no movies, nothing (every extra penny goes towards your debt). Remind yourself it's temporary. Going through it made me realize I never wanted to be in that position again. Go start looking for a second job (or third) and good luck; the pain is temporary!
    edited November 30
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  • mommdcmommdc 11505 replies31 threads Senior Member
    edited November 30
    Don't plan on going to another school to finish.

    Most require that you take a minimum amount of credits at their institution.

    It might be 30 credits or even 60.

    That's not worth it, especially if it's going to cost more than the other school.

    Also you are now over 24, so you will be considered independent for FAFSA.

    Only your income will be considered but with a household size of 1 and $30,000 of income you might not qualify for a Pell Grant.

    I think you FAFSA EFC will be about $7,000, so too high for a Pell Grant.

    You will also need to check if you have any loan eligibility left.

    As an independent senior you can borrow up to $12,500 (if you haven't reached your federal direct loan limit)

    Pay off the balance as quickly as possible.

    Get extra jobs if necessary.

    Don't go back to school until you know exactly how much it is going to cost and you know you can afford it.

    If you only have 6 credits left, then finish at the old school.

    See which classes you need to finish your degree, see if you can do any online, once your balance is paid off.
    edited November 30
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  • mom2collegekidsmom2collegekids 84191 replies1035 threadsForum Champion Financial Aid, Forum Champion Alabama Forum Champion
    thumper1 wrote: »
    My suggestion...get a second part time job and dedicate the entire earning to your loan repayment.

    Will your parents not help at all?


    this. get a second job and dedicate all of it to paying off the debt.

    can you become an uber or lyft driver

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  • blossomblossom 9958 replies9 threads Senior Member
    What field are you hoping to enter-- and do any employers in this field offer tuition reimbursement as a benefit? If you could get a job in your intended field-- now- even entry level, and then moonlight per the above suggestions to generate enough cash to get out of debt, you would be in a position to re-enroll once the debt is paid off AND have your employer help pay for you to finish college.

    Any opportunities where you are? Sounds like you're living on the cheap- which is great-- but what do you hope to do when you finish your degree?
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  • aunt beaaunt bea 9899 replies64 threads Senior Member
    If anyone knows of places I can get approved pretty easily for a loan that amount or close to it with my credit score range, debt-to-income ratio, & income, please let me know.
    You already have received an answer to that based on your experiences. A financial institution needs to see collateral: a family member who will co-sign, a significant work history with the same employer over time.
    I'm personally sick & tired of having to work jobs that expose me to harsh elements (such as a hot kitchen or having to be out in the heat/cold with Amazon delivery, etc.) and would like to have a job in the field I love or something similar. But in order to do that, I MUST get my degree.
    Yea, well that’s what people do when ya don’t have money.
    Those of us, on this website, who weren’t born into the lap of luxury, worked those types of jobs, ALL OF THE TIME.
    I couldn’t afford a car so I had to take the bus, with my bike, to travel to 1 of 3 of my part-time jobs. I hated it, but I knew it would only be for a fraction of my adult life. I hate to say it, but it’s called “Paying dues” because you aren’t going to get an easy handout.
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  • thumper1thumper1 75471 replies3310 threads Senior Member
    Even after I got my bachelors degree and had a full time job, I still elected to work part time. It was a smart decision...gave me a financial cushion.

    If you are working full time, then look for something part time.
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    edited December 3
    @thumper1
    1) My parents can't help. They are in financial hardship themselves.

    2) Do you understand how long it'd take to pay off $10K with a part-time job? Easily a couple years at least. The issue with that is that credits expire after like 5 years or so nowadays, so by the time I'd be able to pay off my debt, I will have to take all my classes over again. That would be a giant waste of time & money.
    edited December 3
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @Tigerwife92
    Like I told thumper1, the issue with that is that the credits are going to expire soon. 1 year is certainly a lot better than 2+ to wait for the debt to be paid off, but there's still risk of putting in all that work & it falling through. I suppose I need to ask the university how long those credits last to be sure.
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  • PublisherPublisher 8764 replies101 threads Senior Member
    Have you discussed a payment plan with your former school ?

    They may be able to work with you.
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @mommdc
    1) That is a very good point I hadn't considered... I will need to check with my university to see how many minimum credit hours I need to take at their institution in order to get a degree from there. Otherwise, if it's too many hours, then yeah, it's better to just finish out at the old school. Sucks that I moved before realizing that though.

    2) Good point about likely not qualifying for a Pell Grant, but I already figured that I was going to have to pay a bit out of pocket to finish my degree. But since I was so close to the finish line, I didn't think it would need to be that much. I'm not sure if I'd be able to have time for 2 jobs AND school though.
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  • Mwfan1921Mwfan1921 2546 replies36 threads Senior Member
    @thumper1

    2) Do you understand how long it'd take to pay off $10K with a part-time job? Easily a couple years at least. The issue with that is that credits expire after like 5 years or so nowadays, so by the time I'd be able to pay off my debt, I will have to take all my classes over again. That would be a giant waste of time & money.

    So many of us understand how hard it is, and you have heard from a number of posters who worked multiple jobs in order to pay down debt, or to build a small emergency fund.

    So far you have received some good advice, but maybe aren't willing to hear it.

    It sounds like you don't have a family member who can co-sign a loan for you, so it seems your best, maybe *only* option, is to increase your income. Can you wait tables? Bartend? Babysit/Nanny?
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  • blossomblossom 9958 replies9 threads Senior Member
    What field are you trying to enter?
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @mom2collegekids
    I actually am an Uber driver part-time sometimes on occasion when I need the extra money, but usually only for major events, like local home college football games, because the surge rate is great. Outside of surge times, Uber isn't that huge here, so you only average like $12/hour at best. Plus, there seems to be more people doing it, so there's more competition & thus less customers per driver. Not to mention all the wear & tear on your vehicle, & since I'd pretty much have to drive at least 2 hours away to major city to make good money, that's just more miles I'd have to put on my car. I would need to find a part-time job that pays that well or more, but I won't have to work crazy hours & doesn't require my personal vehicle. I can save Uber for the big events.
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @blossom
    That actually sounds like a really great idea, to find a job in my field where they will reimburse tuition bills. The question I have with that is... would I really be hired for any job like that without any degree or without any prior job experience in my field?
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  • mommdcmommdc 11505 replies31 threads Senior Member
    UPS and FedEx are hiring in our area now. They have short shifts available that you might be able to do in addition to your other job, and have some tuition assistance as part of employment (part-time or full-time) I think.
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @aunt bea

    I'm not saying I'm looking for an easy hand-out here... I'm saying that I would like to actually start my career rather than be stuck in jobs that I don't want to work for the rest of my life. I understand I have to work these kinds of jobs in the meantime until I further advance my career, but in order to even start doing that, I need to finish my degree, & in order to do that, I need to pay off this large debt.
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  • mommdcmommdc 11505 replies31 threads Senior Member
    Are there any online classes you can take at your old school? Could you pay for one class and maybe then your credits might not expire?

    Do you usually get a tax refund when you file? Could you use that towards tuition?
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  • SlicedHumblePieSlicedHumblePie 21 replies1 threads Junior Member
    @Publisher
    Yes I have. They will not arrange a payment plan with them directly; they sent the bill to a collections agency & I've been on a payment plan with them for the last 2.5 years. They told me that it doesn't matter that I'm on a payment plan though, I need to pay off the balance IN FULL before I can re-enroll.
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  • PublisherPublisher 8764 replies101 threads Senior Member
    edited December 3
    OP: How long have you been aware of this debt ?

    How many payments have you made toward reducing this debt obligation ?

    This approach may help find a lender willing to help you since educational debt is not dischargeable & because you have been consistently making payments once you realized the problem.

    Educational loan companies want a credit score of at least 660, some want a minimum 680.

    I can PM you a list of 7 or 8 student loan refinance companies. These are private lenders, but rates are very low if you qualify.
    edited December 3
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