Loans (payday, predatory, student), Pawn

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Question: I started Beauty School in Sept 07, I was 17 at the time.The school had me sign for the loan without a co-signer. My parents filled out the paper for the Pell Grant and wanted to pay so much monthly. The school said I had to have a Subsidized Stafford loan to get the Pell Grant.Am I responsible for the loan? Since I was told afterwards that it was not a legal binding contract due to my age and that neither one of my parents co-signed on it?

Answer:

From your question it is unclear what you filled out and signed but in order to get any government sponsored financial aid you are required to fill out the Free Application for Financial Student Aid (FAFSA).  In most circumstances the FAFSA requires both the student's and the student's parent signature (or electronic signature).

The government offers a variety of different progams two of which are the Federal Pell Grant and the Federal Stafford Loan.

With a few exceptions, Federal Pell Grants are available only to undergraduate students. Grants do not have to be repaid.

Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students. There are two types: Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL).

  • If it is a subsidized Stafford loan (demonstrated need for the loan), you are not responsible for interest while attending at least half-time and the principle is deferred.
  • If it is an unsubsidized Stafford loan (financial need was not demonstrated) the principle is still deferred but you are responsible for paying interest on the loan.

For more information please follow this link.

If you have further questions or concerns please contact an attorney.

 

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QUESTIONS

  • I started Beauty School in Sept 07, I was 17 at the time.The school had me sign for the loan without a co-signer. My parents filled out the paper for the Pell Grant and wanted to pay so much monthly. The school said I had to have a Subsidized Stafford loan to get the Pell Grant.Am I responsible for the loan? Since I was told afterwards that it was not a legal binding contract due to my age and that neither one of my parents co-signed on it?

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