I Stopped Going to College But They Want Me to Pay My Student Loan


Dear Steve,

I went to IADT in 2007 and a month in 2008 and for the life of me I couldn’t understand why I owed so much money to the college when I dropped out. So now Im trying to get out of this crazy loan I’m in I have been mislead by so many people Navient and usa funds and Allied interstate all told me if I pay this much money my student loan would be forgiven. Reading your story really helped me to move forward with this issues.

My question is how do I go about providing the proof that I have gathered all ready. How do you charge a person for going to school when you weren’t even there?



Dear Sverre,

You asked a question I get from time-to-time about being charged when you were not there. In all of the cases in the past the way that happens is if the student drops out after the cancellation period of fails to follow the withdrawal procedure.

In one past example I was contacted by a student who said he was not satisfied with his community college and so he stopped going and felt like he should not be charged because he was not there. Well that’s not the responsibility of the school. It’s the responsibility of the student to follow the rules for cancelation.

Most often the rules for cancelation require the student to withdraw within a set period of time. For example, take a look at the tuition adjustment deadlines for Iowa State University. Or take a look at the University of Illinois policy, “Students who drop a course prior to the tenth day of instruction for full term courses receive a full (100%) refund of the tuition and fees. Thereafter, no refund is allowed.”

So it is possible that someone could drop out or stop attending without following the procedure or be outside refund or tuition reduction dates. If the student loan was not promptly begun to be repaid then the loan balance could easily continue to grow through accrued interest and collection penalties. The delinquent account would then land in collections.

So if my guess is correct and this sounds similar to your situation, the most important evidence or proof to gather is documentation that shows your dropped out in accordance with the school withdrawal or cancellation policy.

Regarding the statement about loan forgiveness, it sounds as if they are offering you a settlement if you pay X% of the loan back. Settling the loan balance is an option to eliminate that noose from around your financial neck.

Just keep in mind that when you settle a debt, and you are not insolvent, you may owe income tax on the amount of the forgiven debt and it will appear on your credit report as a bad debt.

You might want to read This is How You Can Settle Your Navient Student Loan.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.