re: How f***ed am I?

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.

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

Well, the university "sold" it to the credit agency for pennies on the dollar. So they will settle with you for less. Give a son story and make an offer. Get it in writing. Do a loan to pay it off and rebuild your credit in the process.
Fine a credit union and you'll get less than 10% interest.

Profit