How to settle for unpaid tuition

My sister went to a private university in PA for a semester. Due to family reasons, financial and personal, she had to drop out just before the end of the semester. The school charged the full amount and she ended up not being able to pay it.

This is not a loan and just an unpaid tuition balance of $9000. She has made a payment arrangement with the school and has been making large monthly payments, $500, for several months now which avoid the account being taken to a collections agency. With monthly late fee of $100, the balance is much harder to pay down. Bottom line is that she cannot afford that large payment with her part time job. The worst part is that her school will not release her transcripts until the entire balance is paid. She needs to transfer to another school and she needs a transcript by next spring.

I can help her out with about $5000 and am looking for a way to settle the whole thing with this amount. I know it is going to be hard. But I think it is worth a shot and I want to approach this prepared.

What would be the best way to approach the school to get them settle at a lower amount. I would greatly appreciate any insights to this matter. Thanks in advance.

Tuition is due at the beginning of the semester....how was she planning on paying for it before she dropped out?

She was charged the entire tuition based on the withdrawal policy. With most schools, after 3-4 weeks of classes the entire balance is charged even if you withdraw. They may or may not agree to a settlement.
Some may agree to settle to avoid collections or legal action but still hold the transcript until the balance is paid in full. Call and talk to the school.

You should go to the school ASAP and talk to the administrative department about withdrawal. Keep your problem in front of them and request for solution.

What will this do? She dropped out at the end of the semester, full tuition is due! Usually after 3-4 you end up paying full tuition based on the school withdrawal policy.