Ok, Here's a little background on the situation. I enrolled in the University of Phoenix in 2007. Although I received a full Pell grant, I had to take out student loans through Sallie Mae to cover my classes. In 2008, I decided to drop two classes due to personal reasons. The University of Phoenix then sent the funds that covered those classes back to my lender. This put me in debt almost $800 to the University of Phoenix. In 2010, I enrolled with a local college. I did not include my transcript from Phoenix, seeing as how I could not obtain it anyway since I owed them money. I received a full grant at the local college which covered my full tuition. Halfway through the semester, I received a letter from the Admissions office stating that my file has been "red-flagged" due to a missing transcript. I could not be a student with out a complete admission file. Even though I was making straight A's, the school had to drop me from all my classes. Being that it was the middle of the semester, it was past the drop/add date for financial aid. Therefore, I now owe the college almost $3000 as well as the $800 to the University of Phoenix.

My question is - Would it be possible for me to take out a small student loan to pay off these debts? My loans with Sallie Mae are not delinquent.

Matty - I don't think it would be since you have already completed the semester and taking out a loan to retroactively pay for the semester is not something that Sallie Mae or others do in general.

Perhaps you may try to strike a deal with the college to pay off some of that debt at a time. If you don't have the money, you don't have the money. But if you are willing to work out an arrangement with the college, I don't see why they wouldn't work with you. After all, the alternative for them is that you pay nothing back and they lose out. You sort of have the ball in your court since the courses have been completed already and they did not previously get compensated from you.