Unpaid Tuition Reported as Loan
Date: Thu, 12/30/2010 - 12:44
In 2004 I withdrew from a semester too late and was still charged full tuition for the semester. I didn't pay.
There were no loans or promissory notes (my financial aid didn't go through), just a bill. This was reported correctly on my credit report as a collections account as of 2005.
I got a letter from the university threatening legal action if I did not pay. I was in a situation to begin paying on the debt, so I set up a payment plan with them. Once I did that, the reporting went from a collections account to an unsecured loan. The reporting shows the full balance due every month, and even though I am paying the agreed upon amount, it shows up as a late payment every month on my account.
This was never a loan. There is no promissory note. From what I understand, this should be reported as a collections account still, possibly with a payment plan designation.
Does anyone have any insight here? Is there anything I can do? My credit is stellar save for this late payment showing up every single month. I can't afford to pay off the balance immediately.
There were no loans or promissory notes (my financial aid didn't go through), just a bill. This was reported correctly on my credit report as a collections account as of 2005.
I got a letter from the university threatening legal action if I did not pay. I was in a situation to begin paying on the debt, so I set up a payment plan with them. Once I did that, the reporting went from a collections account to an unsecured loan. The reporting shows the full balance due every month, and even though I am paying the agreed upon amount, it shows up as a late payment every month on my account.
This was never a loan. There is no promissory note. From what I understand, this should be reported as a collections account still, possibly with a payment plan designation.
Does anyone have any insight here? Is there anything I can do? My credit is stellar save for this late payment showing up every single month. I can't afford to pay off the balance immediately.
It is reporting correctly....effectively the school has converte
It is reporting correctly....effectively the school has converted it to a loan status (which a lot of school do) since you failed to pay it at the time it was due. A payment plan will not change the fact that it is a collection account and the entire balance is past due. Tuition accounts do not come with payment plans.
You do have a contract with the school....when you enrolled in the school you agreed to all the terms in the student handbook including tuition refund policies and how collections of those accounts are handled
