Collections for school

[Lapb4651]

In Colorado, my husband signed up for college classes but never went. He ended up enrolling in a totally different school and then forgot to drop the classes. They now garnish our state tax refunds to pay for the classes he never attended. Can we get out of this?

 

[adjusterjack]

Can we get out of this?

How would anybody here know?

Contact the school and ask.

 

[quincy]

In Colorado, my husband signed up for college classes but never went. He ended up enrolling in a totally different school and then forgot to drop the classes. They now garnish our state tax refunds to pay for the classes he never attended. Can we get out of this?

How much does your husband owe?

How old is the debt? When was it turned over to collections? Did your husband receive notice of garnishment?

Did your husband receive a notice about the possibility of a temporary suspension of collection action (until June 1, 2021) due to Covid? If so, did he respond to the notice and the judgment creditor?

 

[Lapb4651]

How would anybody here know?

Contact the school and ask.

So I have tried that, I am here to get legal advice? School won't budge. Next person please!

 

[quincy]

So I have tried that, I am here to get legal advice? School won't budge. Next person please!

There WAS a “next person.”

 

[Lapb4651]

How much does your husband owe?
Around 3k

How old is the debt? When was it turned over to collections? Did your husband receive notice of garnishment?

5 years. Turned over after a year. He did receive notice that it would start to be deducted from state tax returns.

Did your husband receive a notice about the possibility of a temporary suspension of collection action (until June 1, 2021) due to Covid? If so, did he respond to the notice and the judgment creditor?

He did not receive any notices about Covid suspending the debt.

 

[Just Blue]

So I have tried that, I am here to get legal advice? School won't budge. Next person please!

We don't give legal advice. We do volunteer, when people are polite, guidance.

 

[quincy]

Thank you for answering my questions.

Your Governor in Colorado signed one law (and is considering another) on student debt. I am not sure if it will help your husband, though. Here is a link to SB21-002, which was extended to June 1:

https://leg.colorado.gov/sites/default/files/2021a_002_signed.pdf

I was curious about the size of the debt because bankruptcy sometimes can be an option, but it would not be a good option for a debt of only $3000.

 

[cbg]

my husband signed up for college classes but never went. He ended up enrolling in a totally different school and then forgot to drop the classes. They now garnish our state tax refunds to pay for the classes he never attended

Gee, guess he should have taken some responsibility for his own lack of actions, huh?

 

[Taxing Matters]

In Colorado, my husband signed up for college classes but never went. He ended up enrolling in a totally different school and then forgot to drop the classes. They now garnish our state tax refunds to pay for the classes he never attended. Can we get out of this?

Ok, in Colorado your state tax refund cannot be attached for a private judgment or private student loan debt. So I assume that your husband either enrolled in a Colorado state/local government college and/or took out student loans from the government or that were guaranteed by the government. Is it the school itself collecting the debt or is it a student loan lender? If it is the school, which school is it?

 

[not2cleverRed]

He did not receive any notices about Covid suspending the debt.

I'm sorry, but this font is too large. It hurts my eyes. Could you make it smaller?

 

[quincy]

I'm sorry, but this font is too large. It hurts my eyes. Could you make it smaller?

You should see how small it looks on a cell phone.

 

[paddywakk]

In Colorado, my husband signed up for college classes but never went. He ended up enrolling in a totally different school and then forgot to drop the classes. They now garnish our state tax refunds to pay for the classes he never attended. Can we get out of this?

Unlikely. The school had a published deadline to drop the classes and avoid payment. He failed to do so. Such a policy is commonplace across the nation.

 

[quincy]

Unlikely. The school had a published deadline to drop the classes and avoid payment. He failed to do so. Such a policy is commonplace across the nation.

I agree that it might be unlikely that the husband can “get out” of the debt, since the debt is 5 years old and it was sent to collections 4 years ago. The best time to try to work out a payment plan was then.

That said, the pandemic has led the federal government and states to pass some temporary debt relief programs. I linked to the Colorado Act that was passed. Sitting still in a Colorado legislative committee - Committee on Appropriations - is SB 21-057 (https://leg.colorado.gov/bills/sb21-057).

Student debt elimination or forgiveness is a topic being seriously debated in the U.S. Congress right now. Unfortunately, the proposals are in the discussion phase and would not be available for Lapb4651’s husband to take advantage of yet.

Here are links to current federal government student loan forgiveness/cancellation and Covid-19 relief information, however, and something of help might be found there:

https://studentaid.gov/announcements-events/coronavirus

https://studentaid.gov/manage-loans/forgiveness-cancellation

Taxing Matters asked about the type of student debt. The answer makes a difference.

 

[paddywakk]

I agree that it might be unlikely that the husband can “get out” of the debt, since the debt is 5 years old and it was sent to collections 4 years ago. The best time to try to work out a payment plan was then.

That said, the pandemic has led the federal government and states to pass some temporary debt relief programs. I linked to the Colorado Act that was passed. Sitting still in a Colorado legislative committee - Committee on Appropriations - is SB 21-057 (https://leg.colorado.gov/bills/sb21-057).

Student debt elimination or forgiveness is a topic being seriously debated in the U.S. Congress right now. Unfortunately, the proposals are in the discussion phase and would not be available for Lapb4651’s husband to take advantage of yet.

Here are links to current federal government student loan forgiveness/cancellation and Covid-19 relief information, however, and something of help might be found there:

https://studentaid.gov/announcements-events/coronavirus

https://studentaid.gov/manage-loans/forgiveness-cancellation

Taxing Matters asked about the type of student debt. The answer makes a difference.

Possibly this is an old collection action and the couple wasn't due for a refund until now. I suspect this is for unpaid tuition or the like NOT covered by a student loan, since the school is supposed to verify the borrower student is actually attending classes prior to disbursing funds.

And I am surprised the school officials would speak with the spouse without the student's written permission - FERPA issue.