Q: I am a college student. I have been waiting on a student loan of $7500. I was approved for this loan around the middle of July, and was told I would receive the money mid September, but a few days ago I received a letter from CLC informing me that "Due to unforeseen developments, we are unable to make student loans at this time, blah blah blah.." or something like that. I call them up and they tell me that I wont be getting my loan because "they don't have any money" (exact quote). Luckily the school already got their money, but this was supposed to be for living expenses. Now I have to go somewhere else and get another loan and go through the whole mess again. SO what happened, exactly? I cant find any news items about it. Their website says their third party financing facilities were abruptly canceled. Who was this thrid party?
A: My suggestion to you is that you contact your states attorney generals office (found in your local phone book under state departments). It seems a little weird to me because I also tried to look it up and only found information about how to get a student loan with them and a couple sites indicating how well they were doing. Explain exactly what happened and the attorney generals office will get you the answers you need. My next suggestion is that you contact your school and ask them if they participate in the Direct Loan program, if they do I would apply for a Direct Loan. What will happen is Direct Loans will send x amount of dollars to the school (you can apply for the maximum Limit depending on if you are dependent or not and what year you are in college) then the school will send the money to you, if you still owe to the school the will deduct it from your refund. Even though your school is paid for you can still get a Direct Loan because you want to use it for school related expenses.