OLD collections account

[Anonymous]

I have an old collections account that fell off of my reports a few years ago. However, it is a balance owed to a university that I attended, and in order to re-enroll or to have my transcripts released that balance has to be paid. My quesiton is if I start paying on it, can it be added back to my credit report, even though the 7 years has long since expired? I need this to be paid in order to complete my degree. 

[rmduhon]

If it's past 7.5 years (credit reporting exclusion period) then it can't be put back on your reports. If you start paying on it and default again it can reset the SOL. Unless it's a federally backed student loan, which has different rules.

[Anonymous]

It isnt a federal student loan, it was a private loan from the university, so I'm not sure if I can default on it once I start making payments again and restart the SOL. How does that work? Do you mean if I start making payments and then stop, they can sue me even though its well past the original SOL?

[rmduhon]

Yes, because in most states if you enter into a repayment plan and default the SOL starts fresh. So make sure you don't default. But even if you do, it can't be put back on your reports.

[Anonymous]

What if its technically not a repayment plan? I spoke with the University and told them that I'd like to pay the debt back and they gave me the total amount and told me to just pay the full amount or make payments when I can. There has been no formal agreement. 

[Anonymous]

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@Anonymous wrote:

What if its technically not a repayment plan? I spoke with the University and told them that I'd like to pay the debt back and they gave me the total amount and told me to just pay the full amount or make payments when I can. There has been no formal agreement. 

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Depends on the state you are in. In about a dozens states (CA included) a signed, repayment agreement is required by statute, in order to establish a new SOL.