My son has prior-year charges from his school - what can we do to pay them?

Question

My son was attending school last year but withdrew before the end of the year. His financial aid office let us know that they needed to return his financial aid funds that he did not earn due to his withdrawal, leaving him with a balance at the school. He wants to reenroll this year but the school says we owe them a significant amount of money and we can’t use financial aid to pay those charges. What can we do?

Answer

If your son has outstanding charges from his previous period of enrollment at a college, those charges are known as prior-year charges. Some types of financial aid restrict the use of funds to pay prior year charges, and many schools have a policy that require any outstanding charges be paid prior to re-enrollment.

There are some private student loan options which may be available to help cover these charges. I would suggest you determine which lenders work with your son’s school, and determine if their loan options offer this type of benefit. One place to start is www.privatestudentloans.com. There you can enter your son’s school to determine the different type of lenders and loans available.

Best of luck!

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