Do any of the federal financial aid loans pay off prior collegiate balances?
I want to get back into school, but before I can do that, I need to pay off my past balance of $10,000. I already tried to apply for the Stafford loan, but I was told that it cant be applied to prior balances. I am trying to avoid gettin a personal loan from a bank because I have horrible credit. Is there any federal loan that will cover this? These are the loans I have heard about:
- Auxiliary Loan Assistance for Students (ALAS)
- Stafford Student Loan, formerly know as the Guaranteed Student Loan (GSL)
- Parents Loans for Undergraduate Students (PLUS). Must be incurred for the use of the individual contracting for the program (not others such as relatives)
- Consolidated Loan Program. Only covers the member’s education expenses
- Federally Insured Student Loans (FISL)
- Perkins Loan, formerly known as the National Direct Student Loan (NDSL)
- Supplemental Loans for Students (SLS)
No. All of these loans first need to be sent to a college to cover current tuition costs. Once that’s covered, if there’s some left over, it goes to you and your costs. Here’s the hitch: Since FA is based on how much schooling you have completed–you won’t qualify for much because there is a hold on your transcripts and the new school looks at you as a freshman if your previous school won’t send over transfer credits.
Looks like alt loan is the only way.
