Catch 22- Financial Aid problems! :-(

[Mountaingirl79]

I am trying to go back to school and so I filled out my FAFSA a couple of months ago. I checked on it's progress today and it says since I defaulted on my $2,000 loan 4 years ago, after my divorce, I am not eligible for aid until I get that resolved.
Well, I defaulted because I am barely getting by and can't pay. In fact, that is why I am applying for aid.

What to do? I guess I am supposed to wait until I have more money and then I can apply for aid?

[Drummer's Wife]

It stinks but I'm pretty sure you have to pay off your defaulted studen loan entirely before receiving any financial aid in the future.

Also, if the last time you went to school you dropped out or got less than C's then you will need to go to school paying out of pocket and get satisfactory grades before applying for aid. This may not be your situation but just thought I'd mention it as my DH had quit classes halfway thru and now is not eligable for financial aid or student loans.

[laohaire]

Hmm... I'm not sure what doesn't makes sense. You have a history of defaulting, and haven't paid the loan you owed previously. Why do you think you should qualify for more aid now?

If I were in your situation, I wouldn't go to school until I could afford it.

[Drummer's Wife]

oh and will you be getting any money back on your income taxes this year? i ask because if so they will likely take it and if not then you should pay it towards your defaulted loan so you can go to school again.

[fek&fuzz]

I'm guessing they don't want to lend money to people who have a history of not paying it back.

You might look into scholarships, grants, work-study or other non-loaned based aid, or a private loan.

Or, call the lender from your old loan and put a repayment plan into place.

[Mountaingirl79]

Thanks! Perhaps when my case with CSE goes thru with my ex husband, I will be able to make payments on that loan. (Right now everything I make goes to things that I should be getting help paying for in the future, leaving me more of my personal to use for other things that are as equally important.) The student loan is the only money I owe to anyone, so thats a plus. If I have to wait until the loan is paid in full to return to school, then it will be much longer than I thought it would be. I was hoping to get grant money to help me make up the difference, so that I could go to school while paying off the loan but I guess that is crazy talk. LOL
Thanks for all of your friendly replies.

[Drummer's Wife]

I'd still contact the loan people and see what they say. you may still be able to go to school with aid if you have started a payment plan. I seem to recall it being like 6-9 months of payments on-time or something like that to get your loan out of "default" status.

Best of luck!