Ask The Get Out of Debt Experts Student Loans

I Was Set to Go Back to School But Can’t Get a Graduate Student Loan. – Grant

“Dear Steve,

I am fifty years old. I have a 10 year old son. My wife and I never had financial problems until recently. We got caught in a perfect storm. We were upside down on our home when I was laid off from a well paying IT Admin job. She is self employed and due to the economy her income plummeted. We could no longer afford the mortgage. The bank wouldn’t negotiate and ultimately we let them foreclose. We used our small savings and ran up about $30,000 of credit card debt trying to make ends meet. The house was sold at auction and we still owe whoever holds the note about $125,000. I believe they have 3 more years to try to collect. I have heard nothing from anyone.

All the IT jobs have moved off shore plus my skills are out of date. Also, my age is against me. So I went back to school to retrain as a registed nurse. Despite brutal competition I was accepted into a highly competitive Family Nurse Practitioner training program. I would be almost guaranteed a six figure income upon graduation. Plus the student loans would be paid off for me after graduation in return for service. I was due to start the program in January. My credit score is 690. But I just found out that because of the foreclosure on my record I am ineligible for any graduate student loans. Without the loans I will have to drop out of the program. I have applied to many banks and credit unions for private student loans and been denied. I can’t find any scholarships. I can delay enrolling for one year but my financial situation will only get worse. I have this golden opportunity for a meaningful new career that will also allow me to get back on my feet financially. But I can’t take advantage of. I’m heart broken and depressed and I don’t know what to do. Should I just give up and try to find any job to stay afloat? I’ve been out of the job market for a year taking science courses. How will I explain that to potential employers?

Grant”

Dear Grant,

In order that I can best answer your question can you provide me with a bit more information? Please post your response in the comments section below.

These graduate student loans you are going after, are they government backed loans or private student loans?

Did you check with the financial aid office at the school and what did they have to say?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

6 Comments

  • The Grad Plus loan qualification is a problem. Hopefully the appeal with be effective. Otherwise you might want to examine these medical training funding programs and see if any of these may be effective, click here.

    Getting a co-signer is a dangerous move for the co-signer and would leave them FULLY on the hook for your student loans.

  • Dear Steve,
    I forgot to tell you that the Dept. of Education and the private lenders would give me a loan if I could find a co-signer. We applied again with my wife on the application. But since she also has the mortgage default on her credit history the result was the same. We both are only children and our parents are dead. Thus we have no relatives who could co-sign for us.

    The National Health Service Corp has a loan repayment program where they will repay your student loans in exchange for 5 years of service. But first you have to get through the program. Again, most students take out Graduate PLUS loans. But those loans are denied to anyone with a foreclosure on their record.

    Grant

  • Dear Steve,
    I forgot to tell you that the Dept. of Education and the private lenders would give me a loan if I could find a co-signer. We applied again with my wife on the application. But since she also has the mortgage default on her credit history the result was the same. We both are only children and our parents are dead. Thus we have no relatives who could co-sign for us.

    The National Health Service Corp has a loan repayment program where they will repay your student loans in exchange for 5 years of service. But first you have to get through the program. Again, most students take out Graduate PLUS loans. But those loans are denied to anyone with a foreclosure on their record.

    Grant

    • The Grad Plus loan qualification is a problem. Hopefully the appeal with be effective. Otherwise you might want to examine these medical training funding programs and see if any of these may be effective, click here.

      Getting a co-signer is a dangerous move for the co-signer and would leave them FULLY on the hook for your student loans.

  • Dear Steve,
    I was awarded small government subsidized and unsubsidized loans of $10,000 per semester which covered only a third of the high tuition. I believe they are called Perkins loans. The school’s financial aid office told me that the vast majority of graduate students make up the difference in tuition with Graduate PLUS loans from the U.S. Dept. of Education. However, the Dept. of Education has a written policy that automatically denies these loans to anyone with a foreclosure on their record in the past five years. I tried to appeal it and was denied. I wrote to my Senator asking for help. Her office contacted the Dept. of Education for a review. But it will take them 6 – 8 wks to reply. Her office told me not to expect a reversal by the Dept. of Ed. Clear agency policies cannot be bent. This makes me angry. The government gave out billions in loans to poorly run, insolvent banks but they won’t give me a comparatively small student loan I need to get back on my feet. I then applied to several banks and credit unions the school’s financial aid office recommended for a private student loan. The school said that they had worked with these lenders in the past and they were reasonable. But I was rejected by them all. I was told by an underwriter that credit policies are very tight now. Two years ago they would have given me a student loan but not today. My credit score probably took a hit from having so many credit checks in the past month. I could pay the 1st years tution from what little saving I have left but that would leave me out on a limb with no way to pay for the remainder of the program. But it doesn’t matter anymore. Today, although I still legally had a month to pay my tuition bill, the school’s admissions office pressured me to drop out of the program. They made me delay my admittance for a year so they could give the spot to a “more viable candidate.” They said that if I didn’t it might “damage my relationship with the school” and I wouldn’t want that. Next January I will be admitted to an accelerated and cheaper, RN program. They hinted that if I didn’t cooperate now it could result in my later enrollment being denied. So I had no choice but to agree. Now I have to somehow survive for another year and then find a way to get through the one year RN program. Once I am through that program there are well paying jobs and loan repayment programs available. But how am I ever going to get there from here? I just don’t have enought resources left to reach my goal.

    thanks,
    Grant

  • Dear Steve,
    I was awarded small government subsidized and unsubsidized loans of $10,000 per semester which covered only a third of the high tuition. I believe they are called Perkins loans. The school’s financial aid office told me that the vast majority of graduate students make up the difference in tuition with Graduate PLUS loans from the U.S. Dept. of Education. However, the Dept. of Education has a written policy that automatically denies these loans to anyone with a foreclosure on their record in the past five years. I tried to appeal it and was denied. I wrote to my Senator asking for help. Her office contacted the Dept. of Education for a review. But it will take them 6 – 8 wks to reply. Her office told me not to expect a reversal by the Dept. of Ed. Clear agency policies cannot be bent. This makes me angry. The government gave out billions in loans to poorly run, insolvent banks but they won’t give me a comparatively small student loan I need to get back on my feet. I then applied to several banks and credit unions the school’s financial aid office recommended for a private student loan. The school said that they had worked with these lenders in the past and they were reasonable. But I was rejected by them all. I was told by an underwriter that credit policies are very tight now. Two years ago they would have given me a student loan but not today. My credit score probably took a hit from having so many credit checks in the past month. I could pay the 1st years tution from what little saving I have left but that would leave me out on a limb with no way to pay for the remainder of the program. But it doesn’t matter anymore. Today, although I still legally had a month to pay my tuition bill, the school’s admissions office pressured me to drop out of the program. They made me delay my admittance for a year so they could give the spot to a “more viable candidate.” They said that if I didn’t it might “damage my relationship with the school” and I wouldn’t want that. Next January I will be admitted to an accelerated and cheaper, RN program. They hinted that if I didn’t cooperate now it could result in my later enrollment being denied. So I had no choice but to agree. Now I have to somehow survive for another year and then find a way to get through the one year RN program. Once I am through that program there are well paying jobs and loan repayment programs available. But how am I ever going to get there from here? I just don’t have enought resources left to reach my goal.

    thanks,
    Grant

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