Student Loan Question FAFSA?

[hoorhay]

Firstly, I'm sorry if this topic is out of place. I just thought the collective opinion of this community would best server my questions being answered accurately.

I'm unfamiliar with the whole student loan process. You hear all the time about bankrupt, super credit debt single moms going back to school, so I'm hoping I'm not too much worse off.

I have a very low end credit score, and some outstanding debts. One to a bank(not a loan, just an overdrawn checking account that was originally their fault) and one or two other small things.

I'd like to go to an IT school fall '15. I can't apply for financial aid until I believe January 1st, so I'm driving myself crazy in the meantime worrying about whether or not I'll be approved. I'm 24 and will be 25 when this takes place, so according to some people I've spoken with that qualifies me as being an independent student, or something like that. I'd like to take out the maximum possible for my first semester(unless it's like some crazy amount, which I don't expect)

I'll be living in student housing with my girlfriend, who will be finishing up her last year of graduate school. She takes out a maximum of 10k per semester, and is of the opinion that I could too, as I'd be an independent student. Sometimes she's overly idealistic.

I did go through this whole process once before, very very rushed last minute weeks before classes started, in 2011 I believe. I took out a loan to go to a local CC, but the loan was never taken by the college. A whole little mess with the college not receiving my proof of High school graduation occurred, so long story short, I owe that school money. But my loan from FAFSA was never taken. It was there, and ready to be taken, but it wasn't. I logged onto their website a month ago and saw there was no record of any loans for that year or any of the following as of present.

I don't know. I realize I've asked a lot of incoherent questions, and I apologize. A lot going through my mind at the moment. Any insight is warmly welcomed!

Thanks

 

[viewtyjoe]

Federal financial aid, in the US, doesn't care about your creditworthiness. The only things that would preclude you from getting loans are having current federal student loans in default and if you run up into lifetime limits.

If you're looking at going to one of the numerous for-profit IT schools out there, don't. The majority of them are garbage and your credentials will get laughed at, and if you wanted to go on to continue your education (bachelor's, etc) you get to do it all over since your stuff is non-transferable. You're better off going to a CC or state school most of the time.

 

[hoorhay]

Federal financial aid, in the US, doesn't care about your creditworthiness. The only things that would preclude you from getting loans are having current federal student loans in default and if you run up into lifetime limits.

If you're looking at going to one of the numerous for-profit IT schools out there, don't. The majority of them are garbage and your credentials will get laughed at, and if you wanted to go on to continue your education (bachelor's, etc) you get to do it all over since your stuff is non-transferable. You're better off going to a CC or state school most of the time.

Actually, I agree! I just said IT school as I felt it applied more heavily to the theme of the forum. I'm actually going to a Community College near my girlfriend's university(or I hope to at least) for a degree in networking. I hope to start my own troubleshooting/repair business(I know, I know. I'm in it for the happiness of what I'd be doing. Money is a secondary concern.) I figured a degree in computer networking and what I'd learn through out the two years, in addition to my certs would be enough in my back pocket to help me get going.

What would technically qualify as a defaulted loan? Like where to loan was received but not paid back? Cause as far as I understand it, my loan was ready to be taken, which is what the school I was going to in 2011 told me. But they couldn't take it until they had proof of my graduation, which was so incredibly difficult to get a hold of back then, as I'd lost my diploma, physical copy. I know have a reprinted copy, but those issues are long in the past. As it stands, I owe that school money for one semester I never attended. They never took the loan.

If a ready loan isn't collected by either the student or the school, is that considered defaulted? Or is it just like not a big deal(cause I can't think of the correct way to phrase it lol)?

 

[viewtyjoe]

In your case, you probably shouldn't have an outstanding loan. Even if you were technically approved, and it disbursed to the school, but you never attended and withdrew prior to the start of the semester, it'd get returned. If you want to doublecheck: https://www.nslds.ed.gov/nslds_SA/ you can use similar credentials to what you use on the FAFSA to check the status of any and all federal loans you have here.