Jump to content

Student debt

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by 71.101.35.108 (talk) at 09:58, 16 September 2012 (→‎External links: fix outdated link). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Student debt is a form of debt that is owed by an attending, withdrawn or graduated student to a lending institution. The lending may usually be a student loan, but debts may be owed to the school if the student has dropped classes and withdrawn from the school (especially if a low- or no-income student has withdrawn with a failing grade, which would functionally deprive the student of the ability of further attendance by disqualifying the student of necessary financial aid); such due payments may be a retroactive penalty for services rendered by the school to the individual, including room and board.

As with most other types of debt, student debt may be considered defaulted after a given period of non-response to requests by the school and/or the lender for information, payment or negotiation. At that point, the debt is turned over to a Student Loan Guarantor or a collection agency.

Furthermore, until the student debt (also known as "financial obligations") is paid in full, most educational institutions control records and transcripts after the student has ended his or her attendance. This functionally disqualifies the student from attending another educational institution that is demanding a full archive of the student's past attendances. If the student either begins to make monthly payments on the debt or pays the debt with another student loan, the former school may allow for an unofficial copy of the transcript to be sent to the latter institution for its registrar to remove a hold on attendance.

See also

Retrieved from "https://en.wikipedia.org/w/index.php?title=Student_debt&oldid=512858175"