Someone please answer this for me

[strong_lady]

Hi Everyone

I know this may not be a credit issuing problem but maybe it is so hear goes as Im going to be calling my lenders Monday.

I attended a community college where I am now and took out a student loan of $2,500.  I got approved for the loan with no problems and went through the semester obtaining a 3.0 GPA.  Since Im moving back home same state just 2 hours away, I applied to a community college there, got accepted and applied for a unsubsidized loan.  I get a letter stating that information contained in the National Student Loan Database indicates that my cumulative subsidized loan principle balance is $23, 560. Your balance exceeds the allowable limit by $650.00.  This amount must be repaid before you can receive any additional federal financial aid.  Please contact your lender to make the appropriate payment.  Your financial aid for the spring semseter has been cancelled until this matter has been resolved.

To make matters worse, the Director of financial aid who gave me this letter did not give it to me until this past friday and it's now Christmas Vaction and she will not be back until January 5, 2009 and school starts January 7, 2009.  So I cannot talk to her but can call the lender.  My lender is College Foundation of North Carolina and I am going to call them tomorrow and fax them this letter.  Also I applied for financial aid early in time by the deadline of November 15th

Attending school that where I got a loan for he spring Spring semester there was no problem receiving my loans and no letter that I have to pay anything back.

Any information will be helpful and appreciated.. Thanks

Strong

[Anonymous]

The aid you applied for may be authorized for each subsequent quarter for the academic year. That still doesn't explain a balance of $23K though. You didn't indicate if you have had loans from previous quarters. I'm assuming no. In that case, it's likely a clerical error (perhaps you have a common name?) or typographical error (was your loan amount $2,356?). It will get straightened out. Unfortunately you'll likely have to wait until just before class starts.

Most schools have payment plans. Perhaps use one of those to bridge the gap between class starting and getting your aid approved. You'll have to spend some out of pocket money, but it's better than being delayed by a quarter.

[strong_lady]

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@Anonymous wrote:

The aid you applied for may be authorized for each subsequent quarter for the academic year. That still doesn't explain a balance of $23K though. You didn't indicate if you have had loans from previous quarters. I'm assuming no. In that case, it's likely a clerical error (perhaps you have a common name?) or typographical error (was your loan amount $2,356?). It will get straightened out. Unfortunately you'll likely have to wait until just before class starts.

Most schools have payment plans. Perhaps use one of those to bridge the gap between class starting and getting your aid approved. You'll have to spend some out of pocket money, but it's better than being delayed by a quarter.

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Yes.. I've had loans from previous quarters and I also went to another school in a different state.  So you think this is a error on their part?  I mean if there was a problem then I would have been denied the student loan that I got for fall semester right?

[LynnInMN]

I saw this happen a few times,  especially with students  who attended multiple instituions with different  guarantors. It  sometimes takes  awhile  for the NSLDS  data  base to be updated  from  the  guarantors  with the dispuresments.   It basically comes  down to  you receive  too much in sub loans and in order to bring  you back into check you must repay the excess  before  any unsub can be  dispursed.   It  is  a  very strict rule that  you will have  to comply with.   

[SCF]

Strong, a good place to start might be the National Student Loan Data System.  Pop over to their website and compare the data that they have to the information you have about the loans.  If there is an error in an amount, you should be able to puzzle out exactly where it is from there.

Good luck!

[strong_lady]

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@SCF wrote:

Strong, a good place to start might be the National Student Loan Data System.  Pop over to their website and compare the data that they have to the information you have about the loans.  If there is an error in an amount, you should be able to puzzle out exactly where it is from there.

Good luck!

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SCF

I will do that and let you know the status of the results.  Im about to go on the website now.

Strong

[strong_lady]

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@LynnInMN wrote:
I saw this happen a few times,  especially with students  who attended multiple instituions with different  guarantors. It  sometimes takes  awhile  for the NSLDS  data  base to be updated  from  the  guarantors  with the dispuresments.   It basically comes  down to  you receive  too much in sub loans and in order to bring  you back into check you must repay the excess  before  any unsub can be  dispursed.   It  is  a  very strict rule that  you will have  to comply with.   

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LynnInMN

Im still trying to understand this... how can I owe money when I dont really owe any.. well not right now.. how could I have received too much when obviously I got approved for the loans in the first place without hestitation.  I cannot go on the the NSLDS website... when I logged on something about if I cannot log on then that means that their website is down.. so I guess I will need to try later.

Basically you are saying Im going to have to pay the $650 right?  Will I get my financial aid back or is it too late and I will have to wait until next semester?  The Counselor whom wrote me the letter comes back on the 5th of January and school starts on the 7th with financial aid needing to be paid by the 6th.

Strong

[strong_lady]

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@LynnInMN wrote:
I saw this happen a few times,  especially with students  who attended multiple instituions with different  guarantors. It  sometimes takes  awhile  for the NSLDS  data  base to be updated  from  the  guarantors  with the dispuresments.   It basically comes  down to  you receive  too much in sub loans and in order to bring  you back into check you must repay the excess  before  any unsub can be  dispursed.   It  is  a  very strict rule that  you will have  to comply with.   

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LynnInMn

Hi.. I asked you a question but did not get a response.  In your opinion do you feel I will have to pay this 650.00 before I can get student aid again.  I contacted my lender but have not heard from them yet.  Thanks

Strong

[LynnInMN]

Yes, you will have to pay it....I thought I made that very clear.

[strong_lady]

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@LynnInMN wrote:
Yes, you will have to pay it....I thought I made that very clear.

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OOOOOkkkkkkkkk........

Lynn its clear now... .. I do however, have another question....though I know that you may not have the answer since I have to ask my financial aid officer about this at school... but here goes... and anyway I cannot ask them until January 5th...

If I was to pay this being that classes start Jan 7th and my financial aid was cancelled would I be able to get a loan for the spring like I wanted to at first... or would it be too late since processing takes a while....

I want to pay this as soon as the financial aid people come back (January5) ... but dont want to be out $650.00 unless I will be getting my financial aid back.. What is your opinion on this?

Otherwise I will pay it off monthly by April

Thanks