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Started By
Message
How f***ed am I?
Posted on 3/7/17 at 3:15 pm
Posted on 3/7/17 at 3:15 pm
Let me preface this by saying I am absolutely not asking for sympathy whatsoever, but rather legit advice for anyone who has remotely been in any kind of situation like this before.
Graduated 3 years ago from a state SEC school. Had a full-ride scholarship. First semester of senior year, failed one class, that dropped me below full-time hours, therefore negating my scholarship for the following semester (scholarship rules said you couldn't fall below full-time)
I re-took the class the following (and my final) semester, passed with a B, and had the failure removed from my transcript. I appealed the scholarship loss to the financial ombud and lost.
It's been 3 years, and I'll admit I was a fricking moron and practically ignored the debt as I wasn't really in a position to pay it off. I thought the statue of limitations, etc. would take care of it. I was a naive moron, and plus now, the university still has never mailed me my diploma which I'd like to have, and I am unable to request any sort of official transcript should I want to pursue grad school, etc in the future.
The debt has been sold to a collection agency, and while they harassed me for the first year, I haven't heard from them since. However, I reached out to the school and the only way to get my diploma, and transcripts is to settle with the agency.
I've never owed on anything before, my car is paid off, I've never missed a rent payment, utility bill, etc. This is literally the only thing (rather big one, though) hanging over my head. And if for nothing else I want my damn diploma and to get rid of this black cloud hanging over my head.
My question is this - what is my course of action in hoping to settle with the collection agency? It is with ERS (or as they're called now Alltran). I'd like to not get completely bent over by them, but also understand it is my obligation to pay. It is one semester of out-of-state tuition to a public SEC school - you can probably guess who. So - any advice is much appreciated here. I know it's not the end of the world and I'm trying not to freak out, but I also want to get this behind me.
Thanks in advance.
Graduated 3 years ago from a state SEC school. Had a full-ride scholarship. First semester of senior year, failed one class, that dropped me below full-time hours, therefore negating my scholarship for the following semester (scholarship rules said you couldn't fall below full-time)
I re-took the class the following (and my final) semester, passed with a B, and had the failure removed from my transcript. I appealed the scholarship loss to the financial ombud and lost.
It's been 3 years, and I'll admit I was a fricking moron and practically ignored the debt as I wasn't really in a position to pay it off. I thought the statue of limitations, etc. would take care of it. I was a naive moron, and plus now, the university still has never mailed me my diploma which I'd like to have, and I am unable to request any sort of official transcript should I want to pursue grad school, etc in the future.
The debt has been sold to a collection agency, and while they harassed me for the first year, I haven't heard from them since. However, I reached out to the school and the only way to get my diploma, and transcripts is to settle with the agency.
I've never owed on anything before, my car is paid off, I've never missed a rent payment, utility bill, etc. This is literally the only thing (rather big one, though) hanging over my head. And if for nothing else I want my damn diploma and to get rid of this black cloud hanging over my head.
My question is this - what is my course of action in hoping to settle with the collection agency? It is with ERS (or as they're called now Alltran). I'd like to not get completely bent over by them, but also understand it is my obligation to pay. It is one semester of out-of-state tuition to a public SEC school - you can probably guess who. So - any advice is much appreciated here. I know it's not the end of the world and I'm trying not to freak out, but I also want to get this behind me.
Thanks in advance.
15
Posted on 3/7/17 at 3:19 pm to Bluegrass_Cat
Hurry up and pay. Malik Monk needs his weekly "stipend"
Posted on 3/7/17 at 3:40 pm to Bluegrass_Cat
how much do you owe?
Posted on 3/7/17 at 3:44 pm to Hawkeye95
quote:
how much do you owe?
It was around 10grand back then. Tuition has increased since, but back then it was around that. However, I'm sure it's accrued the "collection fees," etc.
I have requested a validation of the debt (did not accept that it was mine, simply requested for validation and so I can see how much it truly is)
This post was edited on 3/7/17 at 3:53 pm
Posted on 3/7/17 at 3:51 pm to Bluegrass_Cat
Pull your credit report and see where your score lands, anything over 700 you should be able to call a few banks to explain your situation and try to get an unsecured loan.
Once you have the funds available, call the agency and try to negotiate your debt. Do not let them know you have the funds available right now (but do not lie) and see if they will negotiate the payment amount. I have been told if you are willing to agree to a payment plan w/ interest, they will sometimes let you pay less knowing they will get the funds through interest. Make sure there are no prepayment penalties, then pay it off on your 2nd installment.
If you cannot get the loan, still call and try to work out a payment plan. Monitor your credit score and work to increase your score; then once it's over 750 most banks will be willing to loan you something unsecured.
Once you have the funds available, call the agency and try to negotiate your debt. Do not let them know you have the funds available right now (but do not lie) and see if they will negotiate the payment amount. I have been told if you are willing to agree to a payment plan w/ interest, they will sometimes let you pay less knowing they will get the funds through interest. Make sure there are no prepayment penalties, then pay it off on your 2nd installment.
If you cannot get the loan, still call and try to work out a payment plan. Monitor your credit score and work to increase your score; then once it's over 750 most banks will be willing to loan you something unsecured.
Posted on 3/7/17 at 3:53 pm to Bluegrass_Cat
I would call them and pay it off. If you don't have the 10k, work out a payment plan. Typically, they're willing to work with you. The worst thing you can possibly do is act like it doesn't exist for two reasons: you won't get your diploma or ever be able to verify it with an employer and your credit will be shot to hell.
Posted on 3/7/17 at 3:54 pm to Moustache
quote:
I would call them and pay it off. If you don't have the 10k, work out a payment plan. Typically, they're willing to work with you. The worst thing you can possibly do is act like it doesn't exist for two reasons: you won't get your diploma or ever be able to verify it with an employer and your credit will be shot to hell.
I also don't want to get sued, because if that happens I know that's a whole different level of dumbfrickery that involves legal fees, etc.
Posted on 3/7/17 at 3:56 pm to Bluegrass_Cat
Negotiate with the debt collection company. They bought the debt for less than what it is worth, so low ball them. Also do not pay anything unless they will remove the negative marks from your credit, this is referred to as a "pay for delete". Whatever you do, do not pay face value for the debt since it has already been sold. They sell debt at a fraction of face value, so the creditor does have wiggle room where you can negotiate. I would start off by offering 30% of your debt. Just tell them this has gone on for years, and you really dont care (even though you do) if you ever pay it, but that is the highest your willing to pay and see what they say. Work up from there. I'd bet they will take 50 percent since it has been so long.
Have you looked at your credit report on www.AnnualCreditReport.com? LINK
Id first go there and see if this is even hitting your credit since it isn't actually a loan, more of a "bill". If it's not hitting your credit it may be cheaper for you to get an attorney to get you your diploma rather than paying back tuition. If you have any other questions, go ahead and ask!
Also here is a good link to read about negotiating with collection agencies: LINK
Have you looked at your credit report on www.AnnualCreditReport.com? LINK
Id first go there and see if this is even hitting your credit since it isn't actually a loan, more of a "bill". If it's not hitting your credit it may be cheaper for you to get an attorney to get you your diploma rather than paying back tuition. If you have any other questions, go ahead and ask!
Also here is a good link to read about negotiating with collection agencies: LINK
Posted on 3/7/17 at 4:18 pm to darnol91
Is this a federally subsidized loan? I doubt it is if they've sold it to a collection agency(I believe they have their own in-house collection agency). But if it is, you're a little more on the hook than with a private loan. They can garnish your wages without taking you to court. But they also have loan rehabilitation programs to get it back in good standing, though this collection agency probably doesn't.
Best thing to do is call them up and negotiate a way to satisfy the debt. Obviously the sooner, the better.
Best thing to do is call them up and negotiate a way to satisfy the debt. Obviously the sooner, the better.
Posted on 3/7/17 at 4:41 pm to The Spleen
No it is not a federally subsidized loan. It is essentially a tuition bill.
Posted on 3/7/17 at 4:44 pm to Bluegrass_Cat
So did you actually not borrow the money, but rather, just didn't pay your tuition and fees? And now the school is who you owe the money to, via the collection agency?
Are you in a position to be able to pay 7-8K cash, now?
Are you in a position to be able to pay 7-8K cash, now?
Posted on 3/7/17 at 4:51 pm to LSUFanHouston
quote:
LSUFanHouston
Yes. It's tuition and fees that was not covered by a scholarship. Money is owed to school via collection agency.
There is no loan, federal student loan, etc involved. Couldn't drop 7-8k cash right now.
This post was edited on 3/7/17 at 4:52 pm
Posted on 3/7/17 at 4:59 pm to Bluegrass_Cat
quote:
I thought the statute of limitations
Applies to crimes, not debt.
It's going to be with you for at least seven years. However, as you stated, the problem is that you can't prove that you have a college degree. No pay the tuition, no get the diploma. It's as simple as that.
Setup a payment plan. However, first try to negotiate a reduced settlement. If you can pay in one payment this is much easier to accomplish.
Posted on 3/7/17 at 6:46 pm to Bluegrass_Cat
(no message)
Posted on 3/7/17 at 6:55 pm to VABuckeye
quote:
However, as you stated, the problem is that you can't prove that you have a college degree.
Yup.
Find out from the school (not the collection agency, they won't have a clue) what it will take for you to get that diploma. Then do that.
It's quite possible you can lie your way into a job by just claiming the degree, plenty of employers don't bother to check. But at some point it will bite you in the arse, and when it does you will likely be summarily fired. It will also keep you from getting certain licenses, which often *do* require evidence.
So get that diploma.
Posted on 3/7/17 at 7:39 pm to Bluegrass_Cat
I was in a somewhat similar situation coming out of college.
Didn't pay my last semester (around 14k), so when my employer did a background check the degree didn't come up. I just explained the situation and had the Dean write a letter to my employer confirming it.
After that I pretty much just ignored it (my SSN wasn't tied to that debt somehow), but I was saving money for it. After two or three years, a debt collector contacted me and I paid them at a discount and called it good. I was finally able to frame that damn diploma!
Didn't pay my last semester (around 14k), so when my employer did a background check the degree didn't come up. I just explained the situation and had the Dean write a letter to my employer confirming it.
After that I pretty much just ignored it (my SSN wasn't tied to that debt somehow), but I was saving money for it. After two or three years, a debt collector contacted me and I paid them at a discount and called it good. I was finally able to frame that damn diploma!
Posted on 3/7/17 at 7:41 pm to VABuckeye
quote:
Applies to crimes, not debt.
Statute of limitations/Prescription most definitely can apply to debt.
Once the period to bring a case has passed, he only has a moral obligation to pay the debt under LA law, but no legal obligation. I'm sure some other states have the same tortured logic. The period depends on the type of debt of course.
Problem is, the university has a separate rule that doesn't depend on legal rules regarding debt. They say, no pay, no degree.
This post was edited on 3/7/17 at 7:46 pm
Posted on 3/7/17 at 7:43 pm to darnol91
quote:
They bought the debt for less than what it is worth
This isn't always true. Many debt collection companies operate without becoming owners of the debt via a contract with the company who extended credit.
This post was edited on 3/7/17 at 7:45 pm
Posted on 3/7/17 at 8:07 pm to VABuckeye
quote:
Applies to crimes, not debt.
A period of limitations applies to all kinds of civil claims, including debts.
Google indicates that the period of limitations (deadline) to file, for example, a KY open account claim is 5 years, but they have a 15 year limit to sue on written contracts, and a few other statutes that it could fall under. Only a KY lawyer with all the relevant facts would know for sure. If it's a different state, then more Google is required. They all differ.
I would not bet on avoiding it by riding out the clock. The collection agency may file suit, and an attorney fee obligation could kick in, depending on what he signed when he registered.
Time to negotiate with the agency.
Posted on 3/7/17 at 8:22 pm to Twenty 49
Well if he/she wants his/her degree, there's no way around it but paying.
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