Is this promissory binding?
I enrolled in a professional school and they made me sign a promissory sheet that said “I promise to pay the entire tuition total of $30K broken down into $26k in installments and $4k in a Stafford loan” before any Stafford loan was approved. A few days after I signed the promissory sheet, my loan application was denied so I never got a Stafford loan and have only been paying by installments entirely. Now my question is whether my promise to pay $4K by Stafford Loan and $26k in installments still binding even after I have paid the entire $30k by installments? Should I go ask the school to change the wording or write me up a new promissory sheet? Thank you.
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Why was your Stafford loan denied? There are only a few reasons why a Stafford loan would be denied…you’ve defaulted, you’ve reached your aggregate maximum, or you’ve failed to meet the minimum academic requirements needed to be approved at the school. You first need to find out why you were denied and, if possible, resolve the problem. Also, $4,000 seems like a strange amount. Undergrads are eligible for a minimum $3500, $4500 or $5500 depending on your grade level, while graduate and professional students have eligibility up to $18,500. Why would they only list $4k?
Besides all that, my guess is somewhere in the contract it says that you are responsible for the entire $30,000 of which they anticipate $4k will come from the Stafford loan and, should it not, you’ll be responsible for the $4k (or something to that effect). Either way, if your education costs $30k you’ll have to pay for it some how…either student loan or out of pocket.
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