Reply
Regular Contributor
ineedcreditbad
Posts: 171
Registered: ‎08-18-2007
0

Student Collections

Hi Guys,

 

Need some advise here.

 

So I signed up for my Spring classes and completed them end of April 2012. A week before my classes ended I was advised by my financial aid office that my aid is being cancelled as I signed up for 5 credits instead of 6 credits. After explaining to them that I was following the curriculum provided by the school they didn't care and sent me the bill for 6500 in May.

 

So I paid 500 and advised the school that I would pay the balance in a month or so. 

 

I was trying to pay off the balance today online and the school system shows that my account was sent to a collections agency yesterday 6/1.

 

 

My question is

 

1 - Can the University send the bill to a collections agency without giving me an opportunity to pay? Or send me a request for payment before sending for collections?

2 - If I pay the collections bill in full will that record be on my credit report?

 

Thanks for your help.

 

Ed

Community Leader
Senior Contributor
laz98
Posts: 4,335
Registered: ‎09-06-2008
0

Re: Student Collections

Have you checked your reports to make sure it's not already on there?  That would be my first step.

 

To answer your 1st question, when they sent you the bill in May, that *was* a request for payment & an opportunity to pay.

 

Even if they hadn't sent you that bill, you already knew that the balance was oustanding, as they advised you that your financial aid was being cancelled.

 

Some people here have reported that a collection agency will report to the credit bureaus after receiving payment in full, so it's hard to say if this particular one will do the same to you or not.  To me, it's really not worth their trouble, but I guess they have their reasons.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 716. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}