Comments on: Diploma Withheld – Why Student Loans Beat Owing the School Directly

By: MrsMicah's Mom

MrsMicah's Mom — Wed, 15 Jul 2009 05:52:54 +0000

Some schools don’t seem to have much flexibility when dealing with unusual situations. When I was in graduate school, I paid for my health insurance on the day that the office was moving, and my check was applied to the wrong account, faculty children’s scholarships. Even after we had tracked down the check, it took three years for me to get them to credit the money to the correct account. Fortunately, I was healthy in those days.

By: mapgirl

mapgirl — Mon, 13 Jul 2009 14:57:39 +0000

My university used to hold your degree hostage till you paid your library fines. (I thought you would appreciate that being a uni librarian yourself.) But from the article, it doesn't appear that these are student loans. Possibly a heck of a lot of 'dorm damage'? I actually took a direct student loan from my school and it really was no different than a US Dept of Ed loan. I think there is something else going on in that article. Frankly if I was in HR at a healthcare facility, I wouldn't hire this person. Just like when you get a security clearance, this person has a very strong temptation to do other nefarious deeds for money within a healthcare environment. (Just ask me how.) mapgirl’s last blog post: Where Am I Headed This Summer?

By: SavingDiva

SavingDiva — Mon, 13 Jul 2009 06:04:32 +0000

That sounds SO stressful! I'm so happy that I was able to make it through school (so far) without acquiring any student loans... I think it's weird that the school won't release the diploma...but I also think it's weird that she needs it. I never had to show my diploma (for anything)....I have flashed a transcript around...but that's about it! SavingDiva’s last blog post: Plan to Get rid of Cockroaches---Started!

By: This Week In Personal Finance – July 12

This Week In Personal Finance – July 12 — Sun, 12 Jul 2009 20:04:33 +0000

[...] Mrs. Micah from Finance For A Freelance Life wrote a must read article on the benefits of taking out third party student loans – Diploma Withheld – Why Student Loans Beat Owing The School Directly. [...]

By: mrsmicah

mrsmicah — Fri, 10 Jul 2009 23:48:30 +0000

Hi Kari, I don't think most schools do it. It's a lot harder on the school to follow up afterward than it is for them to accept loan money and leave it to the loan companies to make sure they get the money back. However, I have not heard of a student loan company ever holding back a diploma from someone who defaulted on loans. They can do a lot of other things to you and your credit score and prevent you from every declaring bankruptcy--so the companies have a lot of power. But your diploma and your degree are between you and the school. If you have a source for that, I'd be interested in hearing it, but otherwise I don't think people have to worry about that if they default. Still not a good idea because of all the repercussions! mrsmicah’s last blog post: Diploma Withheld - Why Student Loans Beat Owing the School Directly

By: Kari

Kari — Fri, 10 Jul 2009 20:13:51 +0000

I didn't know you could actually owe the school. It is also my understanding that student loans do the same thing and will put a hold on your degree if you aren't actually paying them off when you are supposed to. Kari’s last blog post: Where I have been