Why do I feel like I am dealing with loan sharks? (schools, paying)
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Sorry if this doesnt belong here, but I dont know where else to post this. Hopefully I can get some insight from the people who do know what I am talking about.
Last summer, I took some online classes. My financial aid didnt go through in time so I ended up owing a balance after the term ended. I didnt have any money to pay on the spot so after a term they sent my account to a debt collector. They charged me $614 for the principle, $192 collection fees and "other fees" (yupe thats what they wrote on the statement) of $153. So now I owe $960 ($345 of those being add on fees). Thats over 50% of the initial charges.
The school never works with students, you only have til the end of the term to pay otherwise they send your account to collections. There are so many programs out there that tries to assist students in completing their education but why do they act like loan sharks towards the ones that pay out of pocket? I mean seriously, I had every intention to pay, but looking at the add on fees makes me cinch. Why couldnt they allow monthly installments with low interest rate so the students can pay it off without having to deal with all these fees. Is this something that I can dispute, especially the "other fees" or do I have to pay the lump sum? Thanks
I don't think that all schools treat their students so poorly. I personally, had excellent experiences with the financial aid office at my school.
You should write to the debt collector and ask them to substantiate the charges. "Other fees" will not hold up in court.
Most terms state that they are allowed to charge you for collection fees. This may consist of lawyer fees and administrative fees. A sum of $192 will be found to be reasonable by the court. The reason why it's a high percentage is because the debt amount is low.
I don't think that all schools treat their students so poorly. I personally, had excellent experiences with the financial aid office at my school.
You should write to the debt collector and ask them to substantiate the charges. "Other fees" will not hold up in court.
Most terms state that they are allowed to charge you for collection fees. This may consist of lawyer fees and administrative fees. A sum of $192 will be found to be reasonable by the court. The reason why it's a high percentage is because the debt amount is low.
Thanks,
Should I write them or phone them? Does it matter?
You are dealing with collection agency and the debt is from a year ago.
And I have no problem paying what I owed now. The reason that I wasnt able to start making payments was because the school had no option for me to make payments through them and at that time I wasnt able to afford to pay the full balance of $614. I'm not even questioning the collection fees, I am just curious what the "other fees" could be. I am attempting to contact my old school first and ask if the charges are valid before making contact with the debt collector. I plan to pay this in full and get it over with but not going to pay for some "other fees" if I dont know what its for.
It's most likely the collection agency that added the fees, not the college. Once the debt has been bought by the agency, you owe them the money, not the school, and the school is no longer going to be able to do anything for you regarding the debt. The collection agency makes it's money by attaching those fees. Contact them, maybe they'll let you settle the debt for a lesser amount, but you'll need to pay it in full. They are loan sharks, and they're awful...get rid of the debt asap.
It's most likely the collection agency that added the fees, not the college. Once the debt has been bought by the agency, you owe them the money, not the school, and the school is no longer going to be able to do anything for you regarding the debt. The collection agency makes it's money by attaching those fees. Contact them, maybe they'll let you settle the debt for a lesser amount, but you'll need to pay it in full. They are loan sharks, and they're awful...get rid of the debt asap.
Thanks! They said they will send me an itemized "list" of the fees. I plan to pay them in full if the fees are reasonable, and will definitely ask if they could settle for less.
Thanks! They said they will send me an itemized "list" of the fees. I plan to pay them in full if the fees are reasonable, and will definitely ask if they could settle for less.
Yes, do this! It worked for my bf when one of his private student loans went into collections. Look online a bit, I'm sure there are tips for negotiating debt. Maybe e-How or Dave Ramsey type site.
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