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 Posted: Fri Jul 21, 2006 10:13 pm Subject: SL in Default, but... |
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the business school I was attending closed after I had to quit taking the classes there. What happens in a situation such as that? The school is no longer opened, it closed shortly after I had to quit. This has been 13 years ago, and my loan is now almost $17,000 due to interest, etc. I made payments on it even after quitting, up until I couldn't afford them when they went higher.
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Samantha_J_72
Joined: 21 Jul 2006
Posts: 4
Debtcc Points: 168
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| Posted: Sat Jul 22, 2006 6:58 am Subject: |
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Samantha,
Student loans are a federal loan and don't have anything to do with the school, so you would have to pay it even if the school didn't exist.
But..If you went to a small school that specialize in one area, like a cooking school or cosmotology school, for example, that isn't an accredited university or college, they could offer in-house financing, and it wouldn't be a traditional student loan. Is this what you did?
_________________
"It's a treat, being a long-distance runner...."
Allan Sillitoe, The Loneliness Of A Long-Distance Runner
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finsfan13
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| Posted: Sat Jul 22, 2006 9:03 am Subject: |
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It was a business school. Offered business classes, stuff like that. But, the loans were a Stafford I think.
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Samantha_J_72
Joined: 21 Jul 2006
Posts: 4
Debtcc Points: 168
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| Posted: Sun Oct 22, 2006 2:21 pm Subject: Stafford loan debt |
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because you quit school BEFORE it closed youa re responsible for the loan amount and interest, ther are no SOL on Stafford loans
A Stafford loan is a loan product offered to students enrolled in American institutions of higher education to help finance their education. The loans are offered under Title IV of the Higher Education Act of 1965 (with subsequent amendments) and are therefore guaranteed by the U.S. Department of Education either directly or through guarantee agencies.
Because the loans are guaranteed by the full faith of the US Government, they are offered at a lower interest rate than the borrower would otherwise be able to get for a private loan. On the other hand, there are strict eligibility requirements and limits on Stafford loans, and they get special treatment in personal bankruptcy cases. Students applying for a Stafford loan must first complete a FAFSA.
Stafford loans are available to students either directly from the United States Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct) or from a private lender through the Federal Family Education Loan Program (FFELP).
No payments are expected on the loan while the student is enrolled full time, and for six months after the student has either graduated or dropped out of a full-time program.
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PDLFREE
Joined: 07 Oct 2006
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