Sad Grad Debt

Graduates of public colleges leave with an average of nearly 19 thousand dollars in student loan debt, according to Nellie Mae. The average for private colleges is 21-thousand. Two thirds of that aid comes from federal programs. If the graduate doesn't pay up, the government can intervene in several ways.

Debt Default

Credit report
missed payments will stay on your credit report for seven years. This could prevent you from getting loans for other things you need in life, like a car or home.
Job rejection
If you have bad credit, it could mean a tougher time finding a job. Many employers these days require good credit before hiring on new help.
Less pay
If you are able to get a job, the government will have the power to take some of your salary to repay your debt. It's called administrative wage garnishment. The government also can seize any tax refund due to you.
Denied government loans
If you default on a federal loan, the government has the ability to tag your social security number to make sure you are not approved for other federal funding, like FHA loans for homes.

One way to keep that debt down is to make sure you get every dollar of student scholarships available. If you've applied and didn't get what you consider to be enough, you can ask for more. And chances are, if you have special reasons and proof of income adjustments, you just may be awarded the amount you want.

How to Appeal

Contact Financial Aid Director
Call the financial aid director and make an appointment to be seen. According to Gordon Wadsworth, author of Cost Effective College, it's much more effective if you meet with the financial aid director in person, instead of trying to work this out over the phone. The financial aid director can make the change on the spot with something called a, "professional decision".
Show Cause
Have documentation to back up your request for more aid. If you can show special circumstances that don't typically show up on the financial aid forms (ie. divorce, or illness), you're more likely to get the aid you need.
Bring the Student
It's always smart to bring the student along. The aid is for them, so it helps if they appear professional and serious about their college intentions. It's also good if the student has good grades. Wadsworth says schools will come up with all kinds of aid if they truly want that student to attend.

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