Am I eligible for a college loan and financial aid if I owe on loans and aid in a different state?
I live in Michigan and I went to college a few years ago in my hometown. I was put on financial aid and I received student loans to cover the costs. But during my last semester I withdrew from classes and did not complete my courses. I lost my financial help and I was going through a rough time and could not pay off the loans. I still owe on my student loans. Now I want to go to cosmetology school. I’d like to start my classes soon but I can’t apply for student loans until I pay off my current loan. Recently I decided I’m moving from Michigan to Sacramento, CA and would like to go to school right after I move but I have the loan in Michigan. I would need a loan to help me get my license. Does anyone know if I can get a college loan in a different state when you never paid that loan off in your own state and your credit is horrible?
Yes you can if the new school participates in federal financial aid- but you must be current on your past loans- not in default. If you owe money on the past loans and went into default/ forebarance or are past due on payments, you will need to get that current or work out a payment plan first.
