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Withdrawal from college/overaward?


My husband, who was receiving federal aid (Pell and other grants + Stafford loan), withdrew from college. According to our calculations, he'd passed the 60% mark at least a week before he withdrew, so no repayment would be necessary (except for standard student loan payments). However, the school sent him a letter stating he'd only made it to the 59.6% point, and owed $2700. About $900 is owed to the school

I suppose we could appeal, but I'm assuming our calculations are off and not the school's. We couldn't find any information on the school's website as to how overpayments are dealt with, but of course we'll be contacting them tomorrow to find out what needs to be done.

But right now we're stressed out -- $2700 is a whole lot of money, and I have no idea what will happen. My question is aimed at those who have experienced this or who work in at a university. Based on your experience, will we be required to pay all of this in one big chunk, or will we be able to make payments? Considering how close he was to passing the 60% mark (where repayment isn't required), are there any other options? Please keep in mind that returning to school more than full-time is *not* possible right now.

Any responses that consist of "go back to school!" will not be appreciated. It really isn't an option for him.

Thanks!

Should read: "returning to school full-time is *not* an option". Obviously, more than full-time is certainly not possible!

Unfortunatly you will have to pay that. But there is a bright side to it. They will accept payments so it wont have to be a whole lump sum even though they prefer it that way. However, you will have to contact them soon to make arrangements while they're still willing to work with you.
The 60% mark could of also ment that if he completed the current semester that made him owe the $2700 for dropping out.

My only advice is to pay it off as quickly as you can. If the school offers a payment plan, sign up for it and follow through so they don't turn you into a collection agency.

And even if he goes back to school, he would still need to pay this off. He can't get any further aid until it's taken care of. At the schools I am familiar with, when any student does a total withdrawal like that (and they are receiving financial aid), the college counselors are taught to send them IMMEDIATELY over to the fin aid office so they know how it will effect their aid.

Knowing when the 60% mark is... or when you think it is... is not good information to have. He needs to complete every semester he starts... or you... well, NOW YOU both know what happens.

He will be paying double, no almost triple, on tuition he didn't even earn any credit for. Now he not only owes on the student loans he took out, he owes the school and the feds who gave him the loans in the first time. NOT good.

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