College Debt But Not a Student Loan

[IGUESSO]

Hello All,

I received a letter from an debt collector, Account Control Technonology (ACT) regarding a college debt (not a loan) from 2004. The SOL in Texas is 4yrs. I sent  ACT an DV letter and a cease and desist letter and received a printout of varies charges. My question is since this is not a loan does it fall under the SOL? Can I negotiate the debt for a lower amount with ACT? Another website stated, because its a public university it does not fall under the SOL. Is that true? The original debt was $2200 and now its over $3000. It is not reporting on any CR.  I cant get my transcript because a balance is due. What would be the best way to handle this? Thanks in advance.

[Booner72]

Both public AND private student loans don't have SOL.  Though Suze Orman is fighting this as I saw her the other day on TV.  She wans them to be bankruptable.  I went 1/2 public and 1/2 private.

Anyway - You need to prove somehow that these are not  "true" student loans.  Books?  Pencils?  Housing?  - Regardless - student loans.  1/2 of all my loans went to my living expenses, not just tuition - so I'm not sure what you mean.

What do you mean?

Thanks and congrats on your 2nd post!

[IGUESSO]

Thanks Booner for the response.

The debt in coming from housing. I did not take out a loan for this. This is what happened. The school sent me a refund check instead of putting it toward my housing. Scholarships and pell grants would have covered everything. (The refund check would have covered housing). Before spending refund on books, etc. I checked our online site to see if any balance was outstanding and there wasn't. I also verified with the bursars and financial aid office. Keep in mind, I did all of this in august of 2004 before any of the refund was spent.  Everything was paid, so I was told. In October, I just so happened to check the online site again. And there it was $2000 for housing. When I brought this to the Universities attention, they had no idea and could offer no explanation why they would send me a check when I had a outstanding balance. This year they sent me an itemization letter showing the charges so I know it's from housing.

Now my question is, since this is not a student loan does it fall under the Texas SOL of 4yrs? Currently my account is with Account Control Technology (ACT) and the university will only direct me to them. Can I settle for less than the $3000 they claim I owe? I just need to get my transcript from this school.

Thanks in advance.

[IOBA]

I am curious about this too.

As for settling for less than 3k that ACT claims you owe, yes, you can, if they agree.   You have documentation/proof the original debt is 2k.   In theory, 1k is late fees, interest, and collection fees.  

Before you contact them for settling for less money, figure out how much you can pay them right now.  Is it 1k?  $1500? 2k?

Once you know how much you can pay them, contact them, via writing, and offer them a settlement for whatever amount.   Explain, in the letter -

- how much you can pay 

- how you will pay it (one payment, ten payments of xx amount?)

- how you will get the funds (borrow from mom, cc advance, etc)

- ask for confirmation that the offer is accepted in writing and no further money  will be due - the debt will be considered paid in full.

When you have the letter, send them a money order (from the post office or 7-11 or some place like that) for the amount agreed upon, include a copy of the agreement, include a note of thanks, and send it all CMRR.  Make sure you keep a copy for yourself.

That should resolve it, end it, be the last of it.   BUT just in case, make sure you keep a copy of everything together, in a safe place.   You never know what might happen in the future.