TUITION BALANCE.....What Now?

[SilverBullet]

Hello....

 

I get my credit pulled in a quest to purchase a house. Mortgage Rep says great score...too many Collection accounts. Must get them paid. Debt to Income ratio.

 

Anwho, Wms & Fud. list a $1290.00 collection acct. about $300.00 more that what the school shows for unpaid tuition in 1995.

 

From reading similar situations, there is no use in going to the school to set up a pay arrangement or make a full payment.

 

In any of your experiences How likely is it that I can make a settlement offer with Wms. & fud. and they accept? Or PFD?

 

Any help or related experience with this is greatly appreciated!

[LynnInMN]

It is possible. However if they pull a credit report and see a mortgage inquiry, they probably wont.

 

If it was a public school, dont expect much off. Maybe 50% off the collection fees. Generally the school wont want to take a loss.

[SilverBullet]

It is possible. However if they pull a credit report and see a mortgage inquiry, they probably wont.

 

If it was a public school, dont expect much off. Maybe 50% off the collection fees. Generally the school wont want to take a loss.

 

Are you saying the school will possibly accept an offer or the CA. Well, the mortgage inquiry has already been pulled. How long should I wait before approaching them, where the mortagage inquirey wouln'd affect their decision?

[LynnInMN]

It is possible. However if they pull a credit report and see a mortgage inquiry, they probably wont.

 

If it was a public school, dont expect much off. Maybe 50% off the collection fees. Generally the school wont want to take a loss.

 

Are you saying the school will possibly accept an offer or the CA. Well, the mortgage inquiry has already been pulled. How long should I wait before approaching them, where the mortagage inquirey wouln'd affect their decision?

 

Mortgage inquiry stays on for 2 years. When I was collecting, any mortgage inquiry regardless of how long ago it was, lessened my settlements. Within 6 months, or very recent, I wouild tell them to pay it in full.

 

With your size of balance, there is not going to be that much room to play.

 

 

If CA is handling the CA, you will have to negotiate thru them.

[SilverBullet]

I have $800.00 cash to send to them, Do you think that will get them to want to settle? And in your experience, What about PFD?

[LynnInMN]

I have $800.00 cash to send to them, Do you think that will get them to want to settle? And in your experience, What about PFD?

 

 

If it is a public school, no. Generally they wont settle off on principal, not to mention the fact that they still have to pay the CA. Public debt...no SOL is their moot point.

 

PFD??? Nope. Education debt...they will follow the same rules on credit report that they do for Perkins loans.

[SilverBullet]

I have $800.00 cash to send to them, Do you think that will get them to want to settle? And in your experience, What about PFD?

 

 

If it is a public school, no. Generally they wont settle off on principal, not to mention the fact that they still have to pay the CA. Public debt...no SOL is their moot point.

 

PFD??? Nope. Education debt...they will follow the same rules on credit report that they do for Perkins loans.

 

The $800.00 is a little over principal.

[LynnInMN]

I have $800.00 cash to send to them, Do you think that will get them to want to settle? And in your experience, What about PFD?

 

 

If it is a public school, no. Generally they wont settle off on principal, not to mention the fact that they still have to pay the CA. Public debt...no SOL is their moot point.

 

PFD??? Nope. Education debt...they will follow the same rules on credit report that they do for Perkins loans.

 

The $800.00 is a little over principal.

 

Huh???

list a $1290.00 collection acct. about $300.00 more that what the school shows for unpaid tuition in 1995.

 

My math is not great but $1290 subtact $300 equals $990.

[Cynic]

Sounds like "principle" is $990.

 

Pretending it is $800 in 1995 dollars, that would be $1050 in 2006 dollars... Consumer Price Index.

 

$990 in 1995 = $1298 in 2006.

 

What a coincidence

 

 

If I owned the debt I would want a bit more then just principle adjusted for inflation. Good thing you don't owe me money:P

Edited April 6, 2007 by Cynic

[SilverBullet]

My mistake....Gee!

 

Coll Agency has it listed as $1290. And the school 780.31

 

If we must get technical?

 

So as I stated $800.00 is a little over principal.