I took out a private student loan from an Ohio university and defaulted in 2011 (I thought it was included in my other loan payments but was not.) The loan is now with the Ohio Attorney General and United Collections Bureau is administering the loan. I have been making payments on the loan for a year, but I am unable to get my transcript until the amount is paid in full. I discovered today that the collections fees being assessed by the OAG and UCB is outrageous. The original loan was $5,000 and it of course sky rocketed with interest and late fees. When I started making payments, the loan + collections fees + interest was approximately $10,000.
I have paid $3,000 so far. I now owe $4000 in certified balance and interest to the university, but still owe $3,000 in collections fees. Has anyone heard of this rate before? From my research, most collection fees seem to be 15-25%.
I am willing (and now able) to pay the $4000 balance, but I cannot pay the entire balance + these collection fees. Is it possible to settle with the OAG? Should I just mail them a check for the total amount outstanding and ignore the collections fees? I was accepted into medical school on scholarship, but cannot attend unless I can provide a copy of my official transcript, and the school has been unwilling to work with me on this.
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