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  1. #1

    Default Collection of a Debt from a Pell Grant

    My question involves collection proceedings in the State of: Washington

    Debt from 2004 of $453 principle from pell grant plus parking ticket.

    Does not show up on any credit report or on student services sites such as FAFSA.

    Finally got information on the debt (they spelled my last name incorrectly) from the colleges paper records.

    The debt was sold to a collection agency, NCO in 2006. I just contacted them today, and the outstanding balance is currently $1194

    This is stopped me from attaining any financial aid, and when I got into contact with NCO they would not budge on the balance, currently accruing .60 per day.

    Is it worth trying to fight this? The college wont take it off their records until its reported as paid, and they wont take payment directly because of selling the debt.

    Thanks

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Collection of a Debt from a Pell Grant

    Do you mean to state that you lost your Pell Grant and ended up owing the college money that you failed to pay back after losing the grant?

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Collection of a Debt from a Pell Grant

    Quote Quoting studentbodies
    View Post

    Is it worth trying to fight this?
    The debt may be uncollectible through the usual means.

    But by the same token nobody is ever obligated to give or lend you money unless you meet their qualifications.

    And if one of the qualifications is you pay the old debt, then you pay the old debt if you want the new money.

    You can continue to ignore the debt as long as you don't have any need for credit, loans or aid.

    In other words, save up cash to buy or do whatever you want and you'll never have to pay the debt.

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