Can a college return a loan that i had been told would cover the cost of my classes return it just to stick me with the bill?
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Can a college return a loan that i had been told would cover the cost of my classes return it just to stick me with the bill?
I registered for some classes at a school in Georgia. I received a loan for just over $3000.I ended up only being able to take 2 of the classes before I started having problems with my pregnancy and had to drop the rest. The cost of the 2 classes I took is just over $3000 and my loan would have covered it. I did this because I knew I wouldn’t be able to have the time, energy, or the money to complete the rest of the courses. They returned my loan without any warning or anything.
Asked on March 16, 2012 under Bankruptcy Law, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What were the terms of the loan? If the loan required you to take and complete all the classes to receive the money, then once you dropped the classes, you would have violated the terms of the loan and it could potentially be rescinded. At the same time, depending on the terms under which you signed up for the classes, you could be liable for their cost even if you did not complete them or even if a loan was refused or rescinded. In short, this situation is governed by the terms of the agreements--the loan agreement, and also the agreement(s) under which you were taking classes--and you need to look to those documents to see your rights, responsibilities, obligations, and liabilities. These agreements are contracts; like other contracts, their terms are enforceable.
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