How to pay back original amount and avoid collection fees?
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How to pay back original amount and avoid collection fees?
I had an outstanding tuition balance of about $6000. I graduated last year and now my account is in collections and while there tagged on a fee of about $2000. I have tried to contact the school offering them the full $6000 principal to be done with this and out of collections but they said that I have to deal with the state not them. My question is that is there any way to avoid the extra fees and just pay back the principal amount of $6000. I refuse to pay $2000 in “collections fees”.
Asked on August 8, 2012 under Bankruptcy Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Whether or not you are responsible to pay collection fees concerning your student loan depends upon what your loan agreement states. As such, you need to carefully read it in that its terms and conditions control the obligations you owe the lender and vice versa. If there is a provision for allowing collection fees concerning the loan, you need to ask for an itemization regarding such from the lender.
Given the situation that you are now in, it is a wise idea for you to consult with an attorney that practices in the area of consumer law for assistance.
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