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  1. #1
    Join Date
    Feb 2015
    Posts
    1

    Default Tuition Reimbursement Repayment

    My question involves labor and employment law for the state of: Virginia

    I worked for Company A for 2 years, during that time I was also a student. Company A had a tuition reimbursement program where I would front the tuition costs, then once a "C" or better grade was achieved they would reimburse me for the tuition costs. In the Tuition Reimbursement Agreement, which I signed, it stated that if I left Company A for any reason prior to two years from degree completion (i.e. received degree in 2012, resigned in 2013), I would have to return any reimbursement I received. The agreement did NOT address any repayment terms, interest, repayment due date, etc.

    I resigned from Company A with $3,000+/- in tuition reimbursement and started to make monthly payments of $100. I did this on my own accord. I was never officially invoiced or given another contract to sign which included repayment terms, etc.

    In February, Company A sent me a letter stating that as of March, 7.21% interest would be applied to the outstanding balance and I HAD to make payments of $252.26 per month to have a zero balance by December of 2015.

    Can they legally charge me interest and demand a repayment date even though neither where stated in, nor agreed to, in the original agreement? I have attached the original agreement.

    If this question belongs in a different sub-forum please let me know or have a moderator move it. Thanks.

    Thank you for your time,
    Frustrated


  2. #2
    Join Date
    Nov 2013
    Location
    Pennsylvania
    Posts
    806

    Default Re: Tuition Reimbursement Repayment

    I would repay them the $3,000, without any interest or penalties, as your contract states nothing about that. If they have a problem, let them sue you. I don't see it working out well for them in Court.

  3. #3
    Join Date
    Dec 2009
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    Lake Chapala
    Posts
    3,043

    Default Re: Tuition Reimbursement Repayment

    Don't know about the interest, someone else will hopefully address that. However regarding the repayment terms, absent said terms in the agreement, the company is within its legal rights (meaning if it sues you it will win) to demand all of the money immediately, or to create any payment plan it wishes.

    - - - Updated - - -

    Quote Quoting PADriver13
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    I would repay them the $3,000, without any interest or penalties, as your contract states nothing about that. If they have a problem, let them sue you. I don't see it working out well for them in Court.
    Only if he repays the $3K. If he doesn't, then it will work out great for them in court.

  4. #4
    Join Date
    Nov 2013
    Location
    Pennsylvania
    Posts
    806

    Default Re: Tuition Reimbursement Repayment

    Quote Quoting eerelations
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    Don't know about the interest, someone else will hopefully address that. However regarding the repayment terms, absent said terms in the agreement, the company is within its legal rights (meaning if it sues you it will win) to demand all of the money immediately, or to create any payment plan it wishes.

    - - - Updated - - -



    Only if he repays the $3K. If he doesn't, then it will work out great for them in court.
    Agreed. Re-reading my post, I was not clear. OP, they can sue you for the full amount, payable at once. They cannot, however, sue you for interest or penalties, if those are not specifically spelled out in an agreement.

  5. #5
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Tuition Reimbursement Repayment

    as was stated, if they sue you should you not pay in full immediately, they will obtain a judgment. Judgments in your state accrue interest at the rate of 6% annually. So, either pay them in full, accept their offer, attempt to negotiate a different payment agreement, or risk being sued and still paying interest PLUS you will have a judgment on your credit history.

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