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Conserve - not a loan

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hi

 

my daughter basically has a pell grant, but was awarded late. and though all the back and forth with the school, the school ended up dropping her classes for lack of payment by the add drop date.

 

so she was left with a debt for a class that she never went to, it was dropped late. and the school is owed the money.

 

so the bottom line is, there is no "student loan" no pell grant involved (the school never got it as far as we know), she was never distributed ANY money from the school (IE: no pell grant money was ever sent to her after the add drop date).

 

so as far as i can tell, this is just a debt with the school. (public community college)

 

she will likely not be going back to college anytime soon.

 

so the question is, is this a debt like any other debt, that will fall off her CR in 7 years?

 

i think this is just a regular debt, not govt backed or anything.

 

Conserve is the collection agency, but can they really do anything? or can we just cease communication them, and let them hold it or turn it back to the school as uncollectible?

 

 

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Public school = public debt. No SOL and it can be federally collected thru tax offset.

 

You cease the CA she is likely to be sued. She pays court and legal costs.

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I'm not sure if thats true, do you have any links that show this?

 

I'm not sure the stopping the tax return is true if there is no federal funding on the debt. I have found references where this has happened, but its always a federal student loan. not an unsubsidised debt.

 

but for credit reporting purposes, is it the same as any other unsecured debt. (IE: falls off after 7 years etc.)

she can only be sued once, and that falls off after 7 years.

 

also, FYI i checked court records, i cant find any lawsuits filed in this county from this CA, so I'm not sure they pursue court action.

 

which may be true, because if there is no SOL, and they sue, thats it. they cant sue again and after 7 years its non reporting and the student has no reason to pay it.

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i think i found some more information.

 

it appears that they can only take the federal return if it is federal related (IE: student loan default).. No CA can do this, only the Dept of Ed.

 

they COULD intercept a state tax return. i have found multiple references to people getting their state tax taken, but not federal. here in florida, we are one of only a few states with no state income tax, so that option doesnt exist.

 

i have still not found a single reference to a state level debt (no federal money involved, only state) to have a tax return taken, or for anything to become of it except for the college not releasing transcripts and/or not allowing future admission.

 

can anyone point me to anything that says different?

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delphipgmr

 

Lynn is a respected expert in this field...and correct. It's rude for you to ask a question then turn around and tell someone they are incorrect.

 

Example of this situation: My husband paid for all of his school at a state University, but was sent to a state community college for one class not offered for his degree. He never received a bill from that college and graduated 3 years later receiving all of his records and a PIF from the University. What he didn't know at the time is that the community college charged some sort of facility fee that he was never notified of. Fast forward a five more years, and they (the community college) seized our tax return for this debt. Yes, it was a state return, but there is no SOL--they will do all they can to get their money. (its been 8 years since this debt was incurred)

 

On a personal note, your daughter signed documents stating she would pay for college and she should pay her debt. This is part of being an adult and one of the biggest reasons college is so expensive. If she is sued, the college will probably win and she will owe court costs, late fees, and interest as well. Also, I believe if she is sued and loses, it is entered on her credit report as a judgment under public record--which can only report for 7 1/2 years. However, just because it isn't on her report doesn't mean that they cant get the money from her. The creditor has 10 years from the date filed with the court (if I'm not mistaken) to enforce the judgment. Meaning, if the judgment isn't PIF within that time frame, they could renew for an additional 10 years, place a lein on her home, garnish wages, and/or file a bank levy.

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JDZ

 

first, i am not being rude, I'm just asking questions.

 

if you look at my profile, you will see I've been on the is forum for almost 10 years now.

 

when i started, my FICO was under 500, now i am at 820.

 

I am not an attorney, but I've taken all 3 CRA's to court, and won. multiple CA's to court pro-se and won.

 

that said I think i have a little experience than most people here. and questioning any information obtained on an internet forum is just prudent.

 

My lawyer has a saying.. there's right, there's wrong, and there's legal... all three are very different.

 

What I'm trying to find out is what the legal limits this CA has, and if this debt has any special reporting considerations. which hopefully someone on this forum has experienced before

 

my concern is this CA is charging $400 extra on a $600 debt as "fees", which i believe is illegal in FL as well, in fact, in court, that is NOT allowed in florida (Ive tried to do it before). so going to court would be cheaper.

 

my daughter NEVER signed anything. in fact i've asked the school to produce her signature and they can't.

 

the fact is it was suppose to be a pell grant that was already approved, but because of the school's incompetence and poor advice, they didnt get the funding in time and gave her wrong advice.

 

the question i asked, even if there is no SOL, does it still fall under the CRA ruled for reporting, IE 7 years. and their collection efforts are limited to the state level, which i believe it is, which means in MY state, they cant do anything anyway except harass for the debt.

 

i found many times, sending a cease notice, forces them to send the debt back to the original creditor (or sell it off) as there is nothing they can do with it.

 

believe it or not, that is sometimes an excellent way to get it removed.

 

i had several debts i ceased, and they bounced between 4 creditors. by the 4th creditor, the couldnt produce the documents, so i sued and won. and had it removed.

 

remember, there's right, there's wrong, and there's legal... what i have done may not have been "right", but it was "legal", i had several debts that should have been on my report for years, and i had them removed within a year.

 

the fact is, even if my daughter paid this tomorrow, its still on her CR for years to come.

 

there are other options.

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i think i found some more information.

 

it appears that they can only take the federal return if it is federal related (IE: student loan default).. No CA can do this, only the Dept of Ed.

 

they COULD intercept a state tax return. i have found multiple references to people getting their state tax taken, but not federal. here in florida, we are one of only a few states with no state income tax, so that option doesnt exist.

 

i have still not found a single reference to a state level debt (no federal money involved, only state) to have a tax return taken, or for anything to become of it except for the college not releasing transcripts and/or not allowing future admission.

 

can anyone point me to anything that says different?

This would be my biggest concern here. She can't be admitted to any other colleges without a transcript from this school, even if it's just a transcript with dropped classes.

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They do not have to provide a signed contract....by your child enrolling in the school she agreed to all policies contained in the student handbook which includes all the financial policies including collection fees.

 

When I worked for the University of Minnesota, a public school, these types of accounts if ceased were simply farmed out to another CA on the same day. We would not deal with it. 3 ceases and we sent it to an attorney for judgment. Just pay it and get over it. It wont be going away. You may be able to get them to drop some of the collection fees but if you become difficult, they may not be willing at all.

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I am going through something similar, but wondering if the question about "is it the same as any other unsecured debt" and will fall off in 7 years was answered.

All I can see is that we are advised not to cease, not to dispute, but I am wondering when I can see a change in my credit score since this is my only collection.

If anyone has any extra details on how to remedy this as much as possible, I would greatly appreciate it.

If it is only that I will have to wait out the 7 years, please confirm this is the case.

Thank you.

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On 3/3/2016 at 5:46 PM, delphipgmr said:

hi

 

my daughter basically has a pell grant, but was awarded late. and though all the back and forth with the school, the school ended up dropping her classes for lack of payment by the add drop date.

 

so she was left with a debt for a class that she never went to, it was dropped late. and the school is owed the money.

 

so the bottom line is, there is no "student loan" no pell grant involved (the school never got it as far as we know), she was never distributed ANY money from the school (IE: no pell grant money was ever sent to her after the add drop date).

 

so as far as i can tell, this is just a debt with the school. (public community college)

 

she will likely not be going back to college anytime soon.

 

so the question is, is this a debt like any other debt, that will fall off her CR in 7 years?

 

i think this is just a regular debt, not govt backed or anything.

 

Conserve is the collection agency, but can they really do anything? or can we just cease communication them, and let them hold it or turn it back to the school as uncollectible?

 

 

why didn't she go to class?

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