Unpaid tuition now in Collections, need some advice!

hi ktsweets--

Remember, as you noted, the account is not sold to the CA--they are assigned the account to collect on, on behalf of the entity that still owns the debt. So, even though it may be assigned to the CA to collect, that doesnt change the ownership of the debt, and it doesnt change anything about the interest being added. Remember when you took out the financial aid that there was interest? That interest is legally acceptable because you agreed to the interest when the loan began.

As for the 50% fee, I am only guessing here, but I would imagine that it would be up to 50% of whatever the amount owed is at the time the CA gets the account, because that is the actual amount owed. Whatever was owed before is different and has no bearing on what is placed with the CA now--what is owed now does. Like I said, just a guess, but thats probably how they work it. There is a specific section on this forum for dealing with student loans--you might find more help there. Pretty much everything about collections is different with student loans--even the laws that govern it--because student loan collections as far as I recall are not subject to the fdcpa.

MOD COMMENT...student loan collector ARE subject to the FDCPA.

i am not able to pay off this tuition loan right now. I don't mind paying it, but it is stopping me from completing my degree requirements. what can I do ? if i complete my studies, i can earn more money and pay off the loan.

Is your tuition past due already?? Tuition is due each semester, not pay after you get your tuition. Are you borrowing or have you borrowed student loans to pay for your tuition?

You will not be able to continue on if you have past due tuition. You will have a lock on your account.

Agreed, the only way to get the financial hold of your student account is to settle the balance. Some schools offer a payment plan set up through a third party. This allows you to pay your tution an fees each semster in portions rather than the whole balance upfront. Also you can enroll in classes for the semester to continue your degree. Caution is you cannot default from the plan. All payments must be made timely.

My school offers the Academic Management Services (AMS) payment plan. They advised me to enroll in the paymet plan at the beginning of the semester. AMS required a portion payment upfront. Then I made regular payments therafter untill it was paid off by the next semester.

I do not think you can apply this to your past due tution and fees. I believe that has to be settled before you can re-enroll for the next semester :(

this is on an old tuition debt. I dropped out 1 week after the allowed "drop date" when I finally got the news that my student loan wouldnt go through (my fault for procrastination, I applied late) so at the point I owed the university the full amount of that semesters tuition, even though I received no credits for it. I have another question though to add on - this went to collections May of '02, however for the past year has not been reported to the credit bureau. Now it is with a new collection agency - can they report to the credit bureau now? I know there's no SOL for them to collect however do they have to follow the 7 year cbr deragatory reporting rule?

By the way - the original debt is actually paid off now (from past years of having my tax refunds confiscated), I just hadn't paid the collection agency fees. But now they have transferred to a new collection agency?

I'm in a similiar situation, I owe my undergraduate school a little over $ 5000, I graduated in 07 but I really what to enrolled into grad school. I currently have a descent job but I want to get my masters, I don't have the money to pay them off, what should I do? I need my diploma and transcript.

The only thing you can do it pay it off if you ever want to go to grad school. Take a second job and apply it all to the debt.

My daughter has a student loan in default. Allied is the CA. The original amount was fairly small, about $2600. When she was contacted by Allied the first time we discussed a down payment and agreed to the rehab program. I made the suggested down payment for her and charged it to my credit card. After the charge was executed Allied called and said it was $200 too much in order to qualify for the rehab program citing a $50 minimum monthly payment and a $500 balance at the end of 10 months. I disputed $200 with my credit card company and received a refund but the monthly payments never started (Aug 2008). Allied refuses to acknowledge the $200 reversal and demands the BIF because she doesn't meet the rehab program requirements. We're at a loss for what to do. I would just pay the $800 balance but she wants the rehab program to help her credit report. Any advice?

It would have been your daughters responsibility to submit her monthly payment or submit an autodraft...they cannot automatically charge a credit card monthly. If the payments were not made, she cannot do the rehab and whatever was paid last summer is irrevelant.

SoapLady, Thanks for your response. She never signed the rehab docs or agreed upon a monthly payment because Allied shut down the process when they realized the monthly minimum and balance requirements would not be met until the $200 credit card charge was reversed. They claim it wasn't reversed even though my credit card account was refunded. We're at an impass. Are you familiar with the minimum $50 monthly/$500 balance after 9 monthly payments requirement? This is a legitimate requirement?

I apologize this is getting long but have one more question. Is the credit score benefit of the rehab program versus paying the loan in full sans the rehab program worthwhile enough to keep arguing with Allied?

It used to be $800-$1000 for a rehab although things might have changed.,

Rehab docs, the official ones are not signed until much later, closer to the completion of the 9 payments.

If the $200 was reversed, it should have charged back. However since it was done on YOUR card and not hers, they may not be able to trace it back to her. Your name is not on file so the accounting department might not know who to debit.
The agency I worked at used to have a "lost and found" file...payments and transfers that came in with no account numbers/names they couldnt trace to an account number.

I have an unpaid tuition bill of 1,750. It is presently in Collections. Collections is now saying that if I don't pay the balance OR a portion of the balance + monthly payments by TOMORROW, they are sending my file to their legal department. Even if I could raise the portion (which I can't), I wouldn't be able to afford the monthly payments. My plan was to pay it all off with my tax refund, but that's 3-4 months away. What usually happens next - when it goes to the Legal Dept?

They could end up suing you.

...and if they sue me and win? What should I expect and what's my time frame? I just want to be prepared. My biggest fear (and I hope I don't sound silly for saying/suggesting this) is jail time.

Debts are civil, not criminal. Debtors prison went away with the dark ages.

If they sue you they could garnish your wages and/or your bank account.

Are Collection Agencies that are trying to collect tuition subject to the rules of the Fair Debt Collection Practices Act ?

of course....all collection agencies are.

My student loan was 1800. I had to drop do to some medical reasons. For awhile I was not working so got way behind on my payments. My total is 2,946.00 I don't mind paying this for I did borrow it. But now its gone in defult and they are garnishing my wages. But they added another 5,000 to it. How can they do that ??

What is your total? $2946 or $5000? Federal loan?

Unfortunately you borrowed an interest bearing loan and collection fees up to 25% are standard. Your interest will has and will continue to accrue and capitalize interest.

My loan was 2946 but the collection agency has added another 5000 the I called the school and they said all I owe them is the2946 and that the collection agency can add whatever they want. That the school has nothing to do with it.

What type of loan? Perkins? Instituational? So your balance is $5000 or $7946? Keep in mind that with any loan interest is still accruing. The school still owns the debt but they have outsourced it or assigned it for collections. I have heard of fees of 50% being added but what you are saying, no.

I have an unpaid tuition balance with a University. I started the semester and dropped midway, (shortly after I was refunded loan money) by doing this, the University returned the student loan money to the loan company. Then, they billed me for the $5000. They have since turned my account over to a collection company that has added $2500. I do not owe the loan company, I owe the University! Can they garnish my tax returns or wages for the unpaid tuition? Also, I was informed that if I send payments to the University, they would in turn keep some and send some to the collection agency. I am wanting to have the CA reduce some of their charges and I would like to deal with the University. What are my options to and what can the collection agency really do besides sue me?

As with most educational debts, the CA does not add the fees, the school does. You agreed to pay the cost of collections and the school tacks it on to your balance. At this point in time, the school has a contract with the collection agency..usually in these contracts the school agrees that all funds submitted to school will be forwarded to the CA as a pay direct. The school also agrees to keep there hands out of the collection process. Thus you would not have the option of dealing with the school...the are contractly bound to pay the CA, so why would they want to use their resources.

Usually these types of accounts will settle off on a portion of the collection fees if you are making a lump sum payment. THey will not waive fees if you are just making payments.

If this was a public (state) school, they can seize your tax return

Is there a time line for instance after 7 years they can't come after you for that bill or since it is state that it can be on forever?? Thanks

State has no SOL.

I am in a very similar situation to everyone here:

I owed my school the full tuition ($4400) of fall semester and because I did not pay, my account was sent to a CA. After discussing the matter with them I found out that I have until April 15th to pay the debt or settle on a repayment plan or the matter will be reported. Is it possible to take out some kind of loan to pay the debt back or is my only option to make monthly payments until the debt is settled which would take about a year and money that I don't honestly have. I'm in up to my head and I have no idea what to do. I would really like to be able to enroll back in school but there's obviously no way of doing that until this hold is settled. Please any info would help

My question is about tuition. I was placed on a veteran's hold at my school until the VA approved and paid for my tuition, and I was also considered not officially registered to the school at any point of time during attendance. Due to school officials not doing their job and turning in paper work and the VA I ended up having to drop out of the school. I am currently being harrassed by a collections company for 12000 dollars, 7000 of that being actual school fees. My student loans were returned and the VA is still deciding on if they are suppose to pay or not. My question is is it legal for them to charge interest on tuition alone?

No such thing as not officially registered during attendance. Your tuition was put on a hold status...which means you were in fact officially registered. If you were not registered officially, the VA would have said NO a long time ago since you did not qualify as you would not have been in school.

You would be responsible for the cost of collections....that is usually in the student handbook. That can be up to 50% of the balance.

I am in a similar situation as well.

I just received a called today (10-25-11) regarding unpaid tuition from Sept 2000. Eleven Years ago!! I never took out a student loan, ever. I attended college on a scholarship. I didn't pass my classes, so my scholarship didn't renew. I couldn't afford college, so I didn't enroll the following semester. I spoke to the college, and they said that they retroactively billed me for the classes since I didn't pass. I have never heard of that practice and I had NO idea I had a balance. Now 11 years later a collection agency is trying to collect.

My question is, is there an SOL of the unpaid tuition. I haven't been able to get a straight answer from anyone. They all say student loans have no SOL, which I understand. However, this is NOT a Student Loan. This is a public school.

Also, if you could point me towards some legal documentation that clearly spells out any exclusions to the SOL, it would be much appreciated.

Debts such as tuition owed to a public or nonprofit private have no SOL either. Public debts can be collected by tax offset.

I have a couple of questions. I just got a letter in the mail saying that i still owe my university $1800, and i have to pay it in 30 days. Financial aid only covered the pell grant part and did not give me the other loans because i did poor last semester. There is no way that i can come up with $1800 in 30 days. What will happen if I cannot pay it? Is there a way i can get a loan to pay it? Payment plan? Can they keep charging me if i dont pay it?

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