Edna Said:

If financial aid denies my appeal can I still take out a federal student loan"?

We Answered:

A student loan IS financial aid, so no. If you are denied, you can't get a federal student loan.

Eduardo Said:

with federal grants, is the application form the same as the student loan application?

We Answered:

I'm assuming that the form that they handed you was the "Free Application for Federal Student Aid," right? This form is your application for a wide variety of Federal Student Aid. It serves as your application for everything from grants (like Pell, SEOG, ACG, and SMART) to loans (like Stafford and Perkins) to Work-Study. Many state agencies also use the form as the application for state-funded grants, so make sure you meet both the institutional AND state filing deadlines.

When you complete the form (online at http://www.fafsa.ed.gov), you will be asked what types of aid you are interested in. If you don't want loans or work-study (or either), you can check "no." If you're not sure, you can check "yes" and decline the awards later.

Leslie Said:

why are most major banks suspending federal consolidation loan applications?

We Answered:

I was told by my banks that it has to be done through the Federal government now and was told to go here.

http://www.loanconsolidation.ed.gov/

Matthew Said:

How difficult is it to get approved for Federal student loan consolidation?

We Answered:

I had mine consolidated earlier this year. It took about 3 months for the final papers to come through but I got. They have a website where you can track your progress. They have to submit forms to your educational creditors and that takes time.
Be patient.

https://loanconsolidation.ed.gov/AppEntr…

Valerie Said:

why did I have to put nontaxable and undeclared income on my Federal Aid application for a student loan?

We Answered:

There is a section for untaxed income. But be careful you only put the things that you're required to put; only certain types of untaxed income are required! As for the why, well, it's just that some wages received may not be subject to tax, but are considered fair game for determining educational financial aid eligibility.

Anyway, this lists what's required to include and what's not, as far as untaxed income:
"The response indicates the total amount of any other untaxed income and benefits that the student (and his/her spouse) received in 2009, such as workers’ compensation, disability, Black Lung Benefits, Refugee Assistance, untaxed portions of Railroad Retirement Benefits, or wages not subject to taxation by any government.

The following benefits should not be included: student financial aid, earned income credit, child tax credit, welfare payments, untaxed Social Security benefits, Workforce Investment Act educational benefits, on-base military housing or military housing allowance, combat pay, benefits from flexible spending arrangements, foreign income exclusion, and credit for federal tax on special fuels."

Violet Said:

Anyone ever discharged federal student loan for special circumstances;false certification/ability to benefit?

We Answered:

I am assuming you read through the disability discharge info and don't think you qualify, so now you are trying to do a false certification of inability to benefit or say they falsified your signature. :-(

Here is my take: I think false certification of ability to benefits are pretty rare now. Prob because those schools who did it in the past are long gone. This is my opinion and my opinion only: but if the school is still up and running, your case does not look good. All schools that I know of require ability to benefit assessments before you are admitted. It is standard and required by the dept of ed before any school can be eligible to receive Federal funds.

Also, if you are in default and continue to be in default, you will not be able to receive further financial aid and it will be reported on your credit reports. When you are in default, your income tax refund can be seized and your wages can be garnished.

I think the disability discharge is probably the most common discharge. Simply because it occurs more and is fairly easy to get documentation to prove. At least it was for my hubby.

Reginald Said:

How will consumer credit counseling affect an application for a student loan?

We Answered:

From what I've been told those programs do nothing that you can't do yourself by contacting your creditors & working out a deal yourself. Also, it's about the same as filing bankraptcy or worse on your credit score. And they charge you so you have MORE debt!