I’m a Victim of Identity Theft and Can’t Pay My Medical School Tuition. – Sarah

“Dear Steve,

My family member took out a credit credit in my name (without my knownledge) and I only recently found out when I applied for a private student loan. It is now being handled but all I want to do, and have wanted to do was pursue my career and become a doctor, and now that I have worked SO hard to get accepted and get there, I feel like my dream has been crushed.

I can’t qualify for a loan, even with a creditworthy cosigner and I’m not sure what to do. I’m so update and don’t know what to do.

Embarrassingly, I did default on a federal loan myself, but am making the necessary payments to recover. They told me after 9 consecutive payments, it will be removed from my credit report and I am on the 3rd.

I want to go back to school next month and feel sooo trapped. I don’t know what to do because I can’t just defer my acceptance.

I have spent hours researching on what my loan options are. Are there any loans I can take out (I need close to $45,000) that I will actually be able to qualify for? Please help, I’m so desperate.


Dear Sarah,

Sadly what we have here is a series of unfortunate situations. It’s too bad that you defaulted on your past loan, but the servicer is correct, after nine payment it will be rehabilitated.

And the fact a family member took out credit in your name is horrible, but not surprising. Most identity theft happens among family or people they know. That hurt your your credit as well.

At this point the answer to the situation will be found, if there is one, with the admission office or financial aid office at the school. It is their policies or those of the lender that are holding you back from this private student loan for medical school.

Ironically, just this morning I answered a question from someone who is on the other side of medical school with a ton of private student loans and struggling. See this article.

Please post your responses and follow-up messages to me on this in the comments section below.


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.
Damon Day - Pro Debt Coach

Steve Rhode

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