Hi all,
I've been trying hard to clean up my credit and pay off all my debts. I'm almost done, however, I still have one outstanding debt from college (2004). I wasn't able to attend classes and as a result was deregistered by an administrator at my school. But my financial aid award was based upon my full-time status in college. Now, I am told that I owe the full amount of my award.
In 2005, my debt was turned over to a collection agency and the amount increased considerably. I received about three letters from the collection agency but they never called me for the debt.
In March, 2010 I applied for a credit card and was denied due to my outstanding debt. I have money now to pay about a third of the debt and thus I sent a letter to the collection agency a couple of months ago to attempt to settle the debt and have the item removed from my credit report. However, I never received a response.
Now I have enough to pay about half of the debt off and I'd really like to improve my credit rating. I don't have any other outstanding debts. So, what should I do?
collections
Hi Lex,
I think you should first check out the account details from your credit report. Also check when the last payment was made. The Statute of Limitations (SOL) on this debt may have expired. Check out the SOL in your state. If the SOL has expired you can dispute this item with the credit bureaus.
Else talk to your college about this debt.
Thanks,
Aaron
credit
I'm a bit curious. I have Financial, for school, as well. Was it Grants you received (I know Grants you don't have to pay back, however..if you didin't attend classes, I don't know the 'guidelines' on it). Was it student loans? I know from experience, student loans don't 'go away'. They can go into defualt, etc..and it can be almost impossible to get them out of default. It would say, on your CR, where the loan came from.