Best way to negotiate a college debt with collection agency

[SimplySasha123]

Hi,

First off, I would like to thank you for taking the time to give me advice. I have encountered a debt with a prior college, back in 2014. I have transferred from this college to another undergraduate program with a different college, and have not been out of college for any time greater than 6 months. This debt was soon handed to a collection agency and greater than $4,000 has been added on to the debt for fees and interest. I have tried to go straight to the college to settle this debt, and have been advised to call the collection agency. The college stated that this matter is now out of their hands and they can no longer do anything about it. I am trying to figure out the best way to settle this debt, because I am trying to obtain my transcripts in order to graduate undergrad, and apply to medical school; however, I cannot afford the new amount that the collection agency is asking, which is over $7,000 now. The college refuses to budge about releasing my transcripts until the debt is paid. What is the best way to handle this situation?

Thank you so much.

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

 

[Zigner]

Yours really isn't a legal question.

You could try contacting the collection agency and offering them payment in full for some amount that will likely need to be greater than $4,000 but less than $7,000. Or, you could see if they will accept a payment plan for the full amount (not likely, since you've shown that you don't really adhere to payment schedules that well.)

 

[adjusterjack]

You can also file bankruptcy. That will discharge the debt but will never oblige the school to release your transcript.

However, discharging the debt where the school is completely out the money might give you some leverage to go back to dealing direct with the school on a cash settlement for, perhaps, the original amount of the debt in exchange for the release of your transcript.

I can't guarantee any of that.