Hi Guys,

I haven't visited the boards in quite some time. As I jump back in, I'm seeking some advice on what is possibly a student loan. My husband registered and attended an online university for one school year. He really slacked off, didn't really "attend" the classes. As a result, at the end of the second semester, his federal aid was cancelled and the student aid refund money that was sent to him is now owed to his school.

My question is: The money owed to his school (listed as Maryland Central Collection Unit); is that considered a student loan or just a debt to the school (and in turn the state's collection agency)? He does have a couple of other student loans, and they are listed as such on his credit report. This $4K debt from his school is listed as a collection account. Any advice is GREATLY appreciated.

It is considered an institutional debt and would be considered a collection account. Now if this was a public school, the debt is considered public debt and he his state tax returns can be seized. There is also no SOL on public debt...this also applies to non profit schools as well.

Thanks for the info LynnInMN,

Husband filed Chapter 7 in 12/04. So, was this debt discharged? He filed pro se, so I don't have an attorney to turn to. He got a refund from the school because after student loan and grants were applied to his account, he was owed money. So, since the refund was backed by federal aid, does that make this a student loan? And if so, does he only have to repay the federal loan/grant portion or the tuition & fees as well?

Again, thanks for your help.

(double post, sorry)

This type of debt would NOT be discharged as it is in effect repayment of the loan/grant. The school reimbursed the govt for aid he was no longer eligible for and in return, they are billing you.