College is threatening to send me to a collection agency, what can I do?

[carpetsandtigers]

During my last semester in college I was unable to make payments to my tuition due to the global issue and not having a job. Now my college is threatening to send it to a collection agency if I don’t pay very soon. I told them that I need a little time to find a job and start making payments, but they said I have to pay it in full at once. What are my options?

[MarvBear]

Welcome to CreditBoards.

[centex]

If this was a loan through the school as opposed to some traditional student loan, then you need to be reviewing the terms.  But if you attended and did not drop out, then you need to figure out some manner of repayment, even if it means going to your bank to try and get a loan to pay the school. 

 

There are far too many details lacking here to allow people to offer other guidance.  A single semester isn't a huge amount...

[carpetsandtigers]

3 hours ago, centex said:

If this was a loan through the school as opposed to some traditional student loan, then you need to be reviewing the terms.  But if you attended and did not drop out, then you need to figure out some manner of repayment, even if it means going to your bank to try and get a loan to pay the school. 

 

There are far too many details lacking here to allow people to offer other guidance.  A single semester isn't a huge amount...

I did drop out and it’s a little under $3,000. I’m 22 and don’t meet the necessary requirements for a bank loan. I will be able to pay it back once I find a job, but I don’t have a job at the moment. Is declaring bankruptcy an option? I don’t want this to ruin my credit 

[VintageWillow]

Please do not even consider BK for this little debt. BK stays on your credit for 10 years.  You might be able to get a collection off your report earlier. Not to mention that the BK itself costs about $2k and all BK attorneys require the fee up front. At this point, you may just need to wait things out until you can get that job.

Edited February 3, 2022 by VintageWillow