If you have been out of college for several years and you’re thinking about returning to further your education, you might be nervous about taking out new financial aid awards. If you are currently struggling with student loan debt from when you were previously enrolled in a college, you might also be wondering whether you’re even eligible to procure a new financial aid award.
There are several factors that will automatically disqualify you from obtaining new student loans from either private or public sources. If you’re currently in default on any student loan, regardless of the source, you will only be able to secure new sources of funding once you have enrolled in one of the U.S. Department of Education’s loan rehabilitation programs. To successfully finish this program and clear away your default designation, you will be required to make six consecutive payments on your student loans on time in accordance with your agreement. Once this has been satisfactorily accomplished, you will then be able to receive new private or public student loans.
Similarly, you will be banned from taking out a new student loan if you have been convicted of a drug felony between the time you took out your previous loan and the time you are applying for a new one. You will be required to wait until the conviction is wiped from your criminal record before you will be deemed eligible to receive new funds. Depending on the jurisdiction in which you live, you may be eligible to speed up the process by submitting a petition to a court to expunge your criminal record.
However, keep in mind that doing so comes with little guarantee that it will actually work. At the bare minimum, you will need to demonstrate your desire to the court about returning to school, and you will need to prove that you are serious about furthering your education and obtaining a degree. After all is said in done, you may still be able to secure student loans even after you expunge your record.
Instead of attempting to take out an additional loan, you may consider interrupting your studies for a longer length of time in order to clean up your finances. Whether you’ve been out of college for 10 years or 10 months, it may be in your best interest to secure a full-time job and save money for future education expenses. This will also allow additional time for you to consider your plans and re-examine your career track, if necessary.
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Author: Jay White
I started Dumb Little Man so great authors, writers and bloggers could share their life "hacks" and tips for success with everyone. I hope you find something you like!