Is this true about FAFSA?

Question

I am a single mother. I went to the University of Phoenix (big rip off!) and owe them money out of pocket. They won't give me my college transcript if I owe them money. I spoke to the new school I am currently wanting to attend and they said it was fine if I didn't have to have my transcript I just needed it before I graduated, but they said my FAFSA won't work until I pay off the University of Phoenix. But I filled out the FAFSA and it went through and was sent to the new school. Has anyone gone through this before....won't my FAFSA work, I used it for my old school too...

Answer 1

This is how to explain it.  

It sounds like this school will allow you to attend and earn credits without transcripts... however... to receive FAFSA money you have to be "Degree Seeking".  (working towards a certificate or degree).  It's federal law and there is no way around it.  They will not make you degree seeking without transcripts from all your previous colleges.

You can fill out the fafsa, list the new school, get an EFC number, and some may even will start getting correspondence from the schools fin aid office... but they will not give you any fin aid without all your official transcripts on file.

So, if you have cash to pay for everything to your new school, then go for it.  But if you don't, it would prob be wiser to use any extra money you have to pay off your debts at the University of Phoenix.

Answer 2

The problem may be when funds are to be distributed to your new school. If your old school, that you owe money to, has reported you to the Higher Education Loan place (I cannot remember what this is called!!!! But its like a credit bureau for student loans) then you may not be able to get any funds. All your FAFSA does is tell you what you're eligible for in gov funding. It does not guarantee that you will get the money if all your ducks aren't in a row.

I owed a past school 1.17... seriously, one f-ing dollar and 17 cents. They reported it to the student loan place and I couldn't get any further Stafford etc... loans until I paid it and gave my new school a letter from the old school showing it was paid.

And, it is still there on the credit thingy  so each time i have transfered, i've had to prove the bill was paid.

Answer 3

If the U of P has listed you as having a problem with them like a Pell Grant overpayment, or a defaulted loan, then the FAFSA becomes unusable until it is resolved. It sucks that some schools will do that to you, but I would ask the new school what is the exact problem with your FAFSA and how to resolve it. If they dont know call 1-888-4-FED-AID, but only as a last resort, they are not as reliable as actual college counselors, but they can still be helpful.