How to pay back original amount and avoid collection fees?

UPDATED: Aug 8, 2012

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How to pay back original amount and avoid collection fees?

I had an outstanding tuition balance of about $6000. I graduated last year and now my account is in collections and while there tagged on a fee of about $2000. I have tried to contact the school offering them the full $6000 principal to be done with this and out of collections but they said that I have to deal with the state not them. My question is that is there any way to avoid the extra fees and just pay back the principal amount of $6000. I refuse to pay $2000 in “collections fees”.

Asked on August 8, 2012 under Bankruptcy Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Whether or not you are responsible to pay collection fees concerning your student loan depends upon what your loan agreement states. As such, you need to carefully read it in that its terms and conditions control the obligations you owe the lender and vice versa. If there is a provision for allowing collection fees concerning the loan, you need to ask for an itemization regarding such from the lender.

Given the situation that you are now in, it is a wise idea for you to consult with an attorney that practices in the area of consumer law for assistance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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