I had a debt I owed my old school. it was 5022.85. I recieved a letter from the collection agency that stated I now owed them 7,930.33 (5022.85 debt 444.21 interest, and 2456.22 for collections cost 7.05 penalty) is the legal for them to charge so much in fees?
Not to repeat what has been previously said, but a lot depends on your state law and the original contract between you and the school. Now, you may think "What contract?", but when you enrolled for class there was a written contract which you must have had to agree to. Most people never notice it, but it is there.
Generally speaking, they can continue to charge interest according to the original contract. As for collections costs, generally they cannot, but they sure will try. They can usually only get costs if they sue you and obtain a judgment.
Are you trying to negotiate a solution with them? When exactly did you sign up for classes?