College Closed Down / Collection Agency Closed Down. What do I do?

[Anonymous]

Hey Everyone!

So I have an interesting one for you. 

I have an old school loan that was picked up by National Recovery (a collection agency) that I've been paying on since 2011. Now the college that I went to (Westwood) has ceased operations and shut down completely.

To make things even more complicated National Recovery called me yesterday (June 15th) and offered to settle my $10,000~ debt for only $999. The only stipulation to the settlement was to pay the $999 BEFORE June 30th since they are shutting down.

Here are a few additional details:

1) This account does NOT show up on my credit report. I was also told it never will according to National Recovery & Westwood.

2) This is my only school loan.

3) I have been consisteltly paying this account for years since 2011.

What should I do? Am I still on the hook for the debt? Will it get sold off? Am I just better off setting with them?

Thanks in advance!!!

[Anonymous]

Probably get sold off. If you can pay it I would as long as you get documentation saying they won't add this to your reports AND make sure you get documents stating the account is paid in full.

[Anonymous]

I would pay it! Before they shut down they will sell it off to a new collection agency who just may report it and want a whole lot more than $999.00

[Anonymous]

Probably get sold off. If you can pay it I would as long as you get documentation saying they won't add this to your reports AND make sure you get documents stating the account is paid in full.


^^^^^

+1

[Anonymous]

Get it in writing that it is settled in full.

[Anonymous]

Cool! Thanks everyone!!

[Anonymous]

If the school is closed and you had to leave the program due to that or they closed due to fraud you can apply for loan forgiveness.

[RobertEG]

Is it a federally insured or guaranteed student loan?

[Anonymous]

So I paid cash most of the way through until my last 2 semester's which is why I have this debt.

[Anonymous]

I dont think it's actually a loan. I believe it was just an outstanding balance from Westwood themselves.

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@RobertEG wrote:

Is it a federally insured or guaranteed student loan?

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