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Can a debt be written off, sent to collections then back to original creditor?

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Michaels Mom

Junior Member
What is the name of your state (only U.S. law)? Ohio

Long story short. I took on-line courses. Completed all of the courses but never went to the actual graduation (it was in another state and it was stated that if I did not attend the actual graduation, my degree would be mailed).

Other than my normal student loan bills, I had never received another bill from the actual school. Never received it from a collection agency either about the school. Never received a phone call or anything.

I am attempting to get a job at a certain company. They made an offer and I accepted then started background check. During background check, they informed me that school is showing that I completed all of the courses, but did not graduate. I never received a bill or even a collections notice. The school said that the debt went to collections and was sent back to them.

How is this possible?

I logged into my old account. My balance showed $0. I logged into the place if you are a former student and needed to make a payment. The balance was $0. On the ledger for my last semester it even shows the amount was written off and I have a negative balance.

I looked in the documents page and it shows that a Student Authorization Title IV Credit Balance document was still needed. This is a document to authorize the school to either hold the excess funds they collected or release them to the student.

How do I get them to release my degree ASAP? I was already given the job offer. What happens if they rescind the offer because of this?
 


FlyingRon

Senior Member
"Being sent to collections" is their accounting. It has no bearing on you. Most likely they just hired a third party debt collector to see if they could hunt you down and coerce you into paying but they were unsuccessful and just marked the account as uncollected.

You'll need to contact the registrar or whoever produces the diplomas and ask them what hoops they want you to jump through. It's up to them. This isn't really a legal issue.
 

Michaels Mom

Junior Member
Thank you for the response.

Before I logged into my account and saw the $0 balance, I did try to talk with them today. I tried making payment arrangements because the potential employer said we could move forward if I could show that I had a payment arrangement agreement. I even informed the school that I could start paying now and have it completely paid off when I received my tax refund in March. The school was actually very rude and said that they don't accept payment arrangements and in order for them to release my information, I would need to pay the balance in full now.

The problem is...I don't have the money to pay in full right now. I am attempting to get this job so I don't have to be paycheck to paycheck. After bills, food and daily living expenses for myself and my 3 kids, I am lucky to have $75 a month left over. And I was going to offer them that.

We don't have cable, or any luxuries so there is no way to spend less. I have already cut everything out.

I apologize for rambling. I just do not understand how a debt can be sent to a collection agency then sent back to the original creditor.

I also don't understand how every page I go on with my account shows that I have a $0 balance.
 
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FlyingRon

Senior Member
Again, what you can find online is specious. Either get out a pencil and paper or pick up the phone and call the university.
 

adjusterjack

Senior Member
I just do not understand how a debt can be sent to a collection agency then sent back to the original creditor.

I also don't understand how every page I go on with my account shows that I have a $0 balance.
None of that matters, so dwelling on it is a waste.

You apparently agree that you owe money to the school and the school wants it in full in order to release your degree. The school has no obligation to take a payment plan.

I realize that you are between a rock and a hard place and that's unfortunate but if you want your degree now, you pay in full now.
 

Zigner

Senior Member, Non-Attorney
You were never curious as to why you didn't receive your diploma in the mail?
 

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