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  1. #1
    Join Date
    Jun 2018
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    6

    Default Collection of Tuition Debt

    My question involves collection proceedings in the State of: Ohio

    Hello! Thank you to anyone for any help and/or clarification.

    I received a letter from a law office in Ohio (my state of residency) advising that my file has been place in their office. The letter advises that no lawsuit has been filed YET.

    I have an outstanding balance from an Ohio public college from approximately 8 years ago. This was not a student loan, it is tuition that I did not pay. The law office says that I owe about $5,000 which includes interest.

    A couple of years ago, I received a call from the Ohio Attorney General's office and I made monthly payments. I did not have much money, but I was scared because it was Attorney General. After a year of payments, they called to update the payment plan and the balance had hardly moved. They said it was due to interest.


    I am very worried about a lawsuit and do not want this on my record. I am pursuing a career in the auto insurance industry and any lawsuits would show up when the company searches my info. Even if this was settled, once a lawsuit is filed, it will come up whenever anyone googles my name. They have not filed the lawsuit yet, but the guy on the phone said he is marking my refusal to pay and this could result in a lawsuit brought against me my his law firm (which is in my city). I dont know how much time I have and I am very scared. I have not been able to sleep well for the past few nights and am constantly breaking down and crying. I do not know who to ask for help because I am so embarrassed. I finally thought to seek online assistance and have been trying to research this for the past 5 hours online.

    I need to save up money to pay. Does anyone recommend that I pay the full amount or can i pay a negotiated rate? If a pay a lower amount, what type of documentation should I request so that they do not sell the remaining balance to another creditor.

    I thought unpaid tuition cleared in Ohio after 7 years. But I do not know if my 2016 payments re-set the calendar.

    THank you!

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    You are free to try to negotiate a payment plan. You do not have a legal right under the law to a payment plan. It's up to them whether to allow one or not.

    But the more you can pay off in full, the better.

  3. #3
    Join Date
    Jun 2018
    Posts
    6

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Quote Quoting cbg
    View Post
    You are free to try to negotiate a payment plan. You do not have a legal right under the law to a payment plan. It's up to them whether to allow one or not.

    But the more you can pay off in full, the better.
    Thank you for the reply, cbg! I will call next week to set up a payment plan. I don't want this going to court, I have read so many threads about that nightmare. I better resolve this now. I just did not know if the SOL ran out. Interesting thing, I can still access my university account and view the billing even though it has been YEARS. It says I have an outstanding balance of $1800. I have not tried to make a payment there. I worry that if I pay the university, then I will still also owe the collections law office too.

    This is so confusing to me... but I have no right to complain considering this is my own fault and I do owe the money. I guess I should not be crying and figure this out ASAP. They call my phone every single day. When I talk to them, they are so rude and talk over me. I get the impression that this is going to go to court really soon if I do not pay, so I dont want to drag my feet. I would have to take a loan again my 401K, but that might be the better option as opposed to that a lawsuit on my record whenever anyone googles my name

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Minor correction:

    "I will call tomorrow to plead with them to permit me to set up a payment plan". Not, "I will call next week to set up a payment plan".

    There's no reason to wait and good reason to handle this quickly. Also, it is up to them, not up to you, whether you may use a payment plan or not.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Quote Quoting Rwill
    View Post

    I thought unpaid tuition cleared in Ohio after 7 years.
    7 years has to do with how long something stays on your credit report.

    The Ohio statute of limitations for a lawsuit based on a written contract (which yours likely is since you "signed" up for the school) is 8 years.

    https://law.justia.com/codes/ohio/20...ction-2305.06/

    Quote Quoting Rwill
    View Post

    But I do not know if my 2016 payments re-set the calendar.
    Unfortunately, in Ohio, they do:

    https://law.justia.com/codes/ohio/20...ction-2305.08/

    Quote Quoting Rwill
    View Post
    I need to save up money to pay. Does anyone recommend that I pay the full amount or can i pay a negotiated rate? If a pay a lower amount, what type of documentation should I request so that they do not sell the remaining balance to another creditor.
    You can offer a discounted lump sum settlement and see how it goes. Just make sure you have the cash to back it up. If the lawyer settles for a discounted amount you get a written "settlement agreement" WHEN you hand over the money. You don't hand over the money without that signed agreement in front of you.

    Google "debt settlement agreement." You'll find samples so you'll know what to look for.

    Quote Quoting Rwill
    View Post
    I will call next week to set up a payment plan. I don't want this going to court,
    I agree with cbg. Call tomorrow instead of next week. And make sure you offer an amount a bit greater than what they can get out of your pay by wage garnishment.

    Quote Quoting Rwill
    View Post
    Interesting thing, I can still access my university account and view the billing even though it has been YEARS. It says I have an outstanding balance of $1800.
    The $5000 that the lawyer is demanding includes accrued interest and attorney fees. The more time the attorney spends on it the higher the fees will be.

    Quote Quoting Rwill
    View Post
    I have not tried to make a payment there. I worry that if I pay the university, then I will still also owe the collections law office too.
    It's almost a given that the university won't accept the money and will refer you right back to the collections law office because that's what the university's contract with the law office says they have to do.

    Quote Quoting Rwill
    View Post

    This is so confusing to me... but I have no right to complain considering this is my own fault and I do owe the money. I guess I should not be crying and figure this out ASAP. They call my phone every single day. When I talk to them, they are so rude and talk over me.
    Yeah, that's how people get when you don't pay your debts for years and years and years. No surprise there. Plus, it's a tactic to scare people into paying just to get the hassle to stop.

    Quote Quoting Rwill
    View Post
    I get the impression that this is going to go to court really soon if I do not pay, so I dont want to drag my feet. I would have to take a loan again my 401K, but that might be the better option as opposed to that a lawsuit on my record whenever anyone googles my name
    If you have enough money in your 401(k) it's probably a good idea to use it to get out from under this.

  6. #6
    Join Date
    Jun 2018
    Posts
    6

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    thank you for taking the time to break down this info. I can tell you put thought and time into this response.

    Does anyone have any suggestions as to what percentage of the total I should offer first?

  7. #7
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Let's go at this from the other end.

    How much are you able to borrow from your 401(k)?

  8. #8
    Join Date
    Jun 2018
    Posts
    6

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    I have a little over $44,000. I am hesitant though because when you put the money back in, you are reinvesting at the current market rate. So I feel as though that is losing more than $5K.

    I spoke with Fidelity and it takes about 5-7 for the money to reach my bank account. So it is not immediate.

  9. #9
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Personally, I think taking a loan for the full amount and then paying your 401(k) back, even if you lose a bit of interest, is a much safer bet than risking a court judgement.

    But it's your credit record to ruin.

  10. #10
    Join Date
    Jun 2018
    Posts
    6

    Default Re: Tuition (Not Student Loan) Gone to Lawsuit Collections

    Thanks for the input and I do see your point. I have a little over $2,000 in my checking and get paid again on Friday (my rent, car, and utilities are paid for the month). If I can negotiate a lower rate, I would like to try for that.

    I am just uncertain what to offer. I am open to suggestions if anyone has any input.

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