Hi,

I dropped out of school back in 2005 and since I didn't complete the semester I wasn't eligible for employee benefits which covered my tuition/fees. Thus, the university came after me for the $6K in tuition that was left on my tab. I want to go to grad school but can't get my transcripts until I pay this $9K ($6K tuition + $3k interest/late fees). My question is does anyone have a letter that I could use where I can offer to pay the uni the $6K on installments over 12 months in a trade for removing the baddies off my credit report and also giving me my transcripts?

Note: these amounts have nothing to do with FAFSA because it was between myself, the university and employee benefits program.

Also, this wouldn't be a "loan" as it would be a tuition/school account. They basically put the tuition charges on my tab and when it wasn't paid by employee benefits (who wouldn't because I didn't complete the semester like they stated I needed to) I owed the uni the money.

Thx.

DJ.

They will not give you a settlement over 12 months. 3 maybe, but 12months absolutely no way. You need to call in ....they will not negotiate in writing. There is also a good chance you have been assigned to a CA....you will need to work thru them.

Also they will not give you your transcripts until you are 100% paid in full. Universities have been burned by too many students "promising" to pay in exchange for transcripts. (Transcripts are basically collateral.)

Hi Lynn,

I'm not expecting any transcripts from them before I pay off my tuition (not CA fees/interest) in full. And this is a private university so I don't have that public debt thing to worry about. But how can I negotiate with them over the phone because if we come to an agreement how will this verbal agreement stand up in court?

DJ

It is not likely you will get out of all of the collection fees/interest. Keep in mind that if this has been assingned to a CA, the school has to pay collection fees to the CA....CA's are hired under contract. Collection fees for tuition accounts tend to be high...they can range from 20-40% and the school wont necessarily want to eat all of that expense. If the school is private but "not for profit", they will not want to take a loss.

If they agree to a settlement, they will probably do that in writing. However I just IM'd my old officemate at the University I used to work for. She now deals with the CA's and settlements for the student financial collection department. She agreed with me that over 12 months will not happen...that is a payment plan, not a settlement. She said they dont agree to settlements that extend out over 60 days and the only write off all fees if you are in a hardship situation. If you are employed, she said you would be lucky for 50% of the fees. Schools both public and private are strapped for funds and the default rates are rising and they wont want to take a loss. She said at the last conference she attended, schools are getting tougher and tougher on settlements....unless you have extenuating circumstances, don''t expect a large settlement, particularly if you have a decent amount of grades on your transcript. They are holding students to the school policies that the students agreed too. Jen said if you had tried to take of this immediately following the semester you attended, they probably would not have applied the fees....but you waited.

Thanks for your suggestions.

DJ

Do you have any assets that could take out a loan against (car, house, etc.) so that you could get a low-interest loan, pay the university and get your transcripts?