Letter to pay or sue for unpaid tuition and fees

[BoxCar44]

I have read many threads and done some research, but the information seems synonymous with other things, so I just want to see if I can get some clarification on my situation. I received a letter today from a public university I attended in 2000-2001. There apparently was a bill that has gone unpaid and has since grown to more than $17k. It was never reported to my credit. They are asking for payment of this now $17k bill in the form of full payment, 90 day arr, or Stipulated Judgement. Should I fail to choose an option, the letter stated they would sue. My questions are:

 

Do I have a right to request an itemized list of these charges?

Can they still sue me after all this time?

Does living in a different state have any bearing on the situation, should the right to sue stand and garnishment is threatened? I ask this with reference to the ability to garnish state tax returns if collecting a state debt.

 

Due to the enormity of the debt, I am considering an attorney. I don't know how to proceed at this point and don't want to get in over my head. I appreciate any advice, information, and knowledge that anyone is able to offer.

[LynnInMN]

I have read many threads and done some research, but the information seems synonymous with other things, so I just want to see if I can get some clarification on my situation. I received a letter today from a public university I attended in 2000-2001. There apparently was a bill that has gone unpaid and has since grown to more than $17k. It was never reported to my credit. They are asking for payment of this now $17k bill in the form of full payment, 90 day arr, or Stipulated Judgement. Should I fail to choose an option, the letter stated they would sue. My questions are:

 

Do I have a right to request an itemized list of these charges?

 

Yup you can request....you will get a copy of your student account.

Can they still sue me after all this time?

Oh yeah...key word is "public" university. Basically the state is collecting and will be sueing you.

Does living in a different state have any bearing on the situation, should the right to sue stand and garnishment is threatened? I ask this with reference to the ability to garnish state tax returns if collecting a state debt.

Living in another state affects nothing.

Due to the enormity of the debt, I am considering an attorney. I don't know how to proceed at this point and don't want to get in over my head. I appreciate any advice, information, and knowledge that anyone is able to offer.

Not much a lawyer can do for you unless you are disputing the debt. Was this tuition or a loan? You agreed to collection costs already and they can add up to 40% in some of these cases.

[improper_validation]

Is it a federal loan? If private, it's probably out of SOL.

[LynnInMN]

Is it a federal loan? If private, it's probably out of SOL.

 

 

The letter is from the University going by what the OP states thus no SOL. Private loans would be outside the school and SOL would completely depend on when it defaulted.

[BoxCar44]

Is it a federal loan? If private, it's probably out of SOL.

 

Not a loan at all. the orginal bill would have been for tuition and fees. I guess all the other amounts to collection charges.

[BoxCar44]

I have read many threads and done some research, but the information seems synonymous with other things, so I just want to see if I can get some clarification on my situation. I received a letter today from a public university I attended in 2000-2001. There apparently was a bill that has gone unpaid and has since grown to more than $17k. It was never reported to my credit. They are asking for payment of this now $17k bill in the form of full payment, 90 day arr, or Stipulated Judgement. Should I fail to choose an option, the letter stated they would sue. My questions are:

 

Do I have a right to request an itemized list of these charges?

 

Yup you can request....you will get a copy of your student account.

Can they still sue me after all this time?

Oh yeah...key word is "public" university. Basically the state is collecting and will be sueing you.

Does living in a different state have any bearing on the situation, should the right to sue stand and garnishment is threatened? I ask this with reference to the ability to garnish state tax returns if collecting a state debt.

Living in another state affects nothing.

Due to the enormity of the debt, I am considering an attorney. I don't know how to proceed at this point and don't want to get in over my head. I appreciate any advice, information, and knowledge that anyone is able to offer.

Not much a lawyer can do for you unless you are disputing the debt. Was this tuition or a loan? You agreed to collection costs already and they can add up to 40% in some of these cases.

 

Thanks for the reply. This is insane. I can't believe that after almost 10 years they decide to tell me I had a bill. It makes so sense that they wouldn't have come after me before. I had no idea it even existed.

 

So I guess my question is would I just be better off agreeing to the stipulated judgement and making payment arrangements? Would they be able to garnish my wages through my employer if they were to sue me?

 

I was reading on some other recent articles of the same situation that the worst that occurred from being sued was the seisure of their state tax returns, but that was from people who lived in the same state as the school

[BoxCar44]

Update on my situation:

 

After receiving only a few responses on the board, I went on a hunt for information. Got in touch with some contacts within the law field. Found out some things about school debts and the lot (probably more than I ever cared to know). Due to my not signing a prom note with the school, the debt is dischargeable. Filing for bankruptcy would be an option for me financially and credit wise. I also would be able to keep my assets (house, car, etc). The school was not willing to make payment arrangements on the account without a stip judgement so I decided to hire a friend of mine as my attorney. She deals with contracts and some cases of bankruptcy, but her firm does a lot of other things too, I guess.

 

Anyhow, I received a letter last week from my friend/attorney, that was sent from the school's legal office, stating that they would agree to a payment arrangement for my unpaid account and they would withhold judgment and abstain from suit against me (cliffs notes version). That was awesome enough, but the kicker was that they removed all the service charges. My original debt turned out to be only like $3500, which means about $14k of it were their own fees and other service charges!! I was floored. I don't have to file bankruptcy and I don't have this huge debt hanging over my head.

 

Anyhow, just wanted to share my story. I hope to have no other financial scares like this in the future.

[chasingmatteo]

good for you. ;>)

[LynnInMN]

Update on my situation:

 

After receiving only a few responses on the board, I went on a hunt for information. Got in touch with some contacts within the law field. Found out some things about school debts and the lot (probably more than I ever cared to know). Due to my not signing a prom note with the school, the debt is dischargeable.

 

There is no prom note for school bills like tuition, fees and other expenses. By enrolling in the school you agree to all terms contained in the student handbook which includes collections of those bills. Your enrollment is basically your signature.

 

Filing for bankruptcy would be an option for me financially and credit wise. I also would be able to keep my assets (house, car, etc). The school was not willing to make payment arrangements on the account without a stip judgement so I decided to hire a friend of mine as my attorney. She deals with contracts and some cases of bankruptcy, but her firm does a lot of other things too, I guess.

 

Anyhow, I received a letter last week from my friend/attorney, that was sent from the school's legal office, stating that they would agree to a payment arrangement for my unpaid account and they would withhold judgment and abstain from suit against me (cliffs notes version). That was awesome enough, but the kicker was that they removed all the service charges. My original debt turned out to be only like $3500, which means about $14k of it were their own fees and other service charges!! I was floored. I don't have to file bankruptcy and I don't have this huge debt hanging over my head.

 

Anyhow, just wanted to share my story. I hope to have no other financial scares like this in the future.

[BoxCar44]

Update on my situation:

 

After receiving only a few responses on the board, I went on a hunt for information. Got in touch with some contacts within the law field. Found out some things about school debts and the lot (probably more than I ever cared to know). Due to my not signing a prom note with the school, the debt is dischargeable.

 

There is no prom note for school bills like tuition, fees and other expenses. By enrolling in the school you agree to all terms contained in the student handbook which includes collections of those bills. Your enrollment is basically your signature.

 

Filing for bankruptcy would be an option for me financially and credit wise. I also would be able to keep my assets (house, car, etc). The school was not willing to make payment arrangements on the account without a stip judgement so I decided to hire a friend of mine as my attorney. She deals with contracts and some cases of bankruptcy, but her firm does a lot of other things too, I guess.

 

Anyhow, I received a letter last week from my friend/attorney, that was sent from the school's legal office, stating that they would agree to a payment arrangement for my unpaid account and they would withhold judgment and abstain from suit against me (cliffs notes version). That was awesome enough, but the kicker was that they removed all the service charges. My original debt turned out to be only like $3500, which means about $14k of it were their own fees and other service charges!! I was floored. I don't have to file bankruptcy and I don't have this huge debt hanging over my head.

 

Anyhow, just wanted to share my story. I hope to have no other financial scares like this in the future.

 

 

No, but some schools actually do have you sign a prom note in financial aid. My attorney said it has more to do with the type of aide you receive, like some loans are offered from the school or the school elects to have the student sign some master prom note that is kept on file. I am not sure of the details, but apparently, if you sign it with the school instead of directly with the lender, the school somehow can tie their debt into it. Doesn't make sense to me, but it has somehow held up in court against some people. In some cases of bankruptcy, people have found that their debt to the school couldn't be discharged because of it being tied to a prom note, so the entire debt to the school is treated like the rest of their non-dischargeable student loans.

[LynnInMN]

 

 

No, but some schools actually do have you sign a prom note in financial aid. My attorney said it has more to do with the type of aide you receive, like some loans are offered from the school or the school elects to have the student sign some master prom note that is kept on file. I am not sure of the details, but apparently, if you sign it with the school instead of directly with the lender, the school somehow can tie their debt into it. Doesn't make sense to me, but it has somehow held up in court against some people. In some cases of bankruptcy, people have found that their debt to the school couldn't be discharged because of it being tied to a prom note, so the entire debt to the school is treated like the rest of their non-dischargeable student loans.

 

Master Prom notes only apply to federal aid....a school cannot tie their tuition to it. In fact the MPN has always been generated by the lender so there is no way the school can alter it....we always had to reprint before any hard copies were signed although most were signed thru e signatures.

 

I have a feeling your attorney is confusing Perkins loans which are dispersed and administered by the school with tuition/billing accounts from the school. Perkins are tied into the MPN...tuition never can and never will be.