Should I pay the collections fees on my student loan or try to get them to sue me for it?
July 7, 2006 3:17 PM Subscribe
Student Loan question: I've started paying off my delinquent perkins loans to a collection agency and discovered they're adding a 40% collection fee to my total. If I stop paying them, my school will seek a judgement, but will it be sans the outrageous 40% fee?
posted by rileyray3000 to law & government (9 answers total) 1 user marked this as a favorite
Basically, I got out of school with hopes for a career in Hollywood. As such, I ate ramen and was forced to let my payments lapse as I lived in my car and hoped for a break.
Well I got one. And now I'm doing okay, on the road to not too shabby. So now I'm paying off the student loans at 50 bucks a month, largely to show that I'm making an effort for my credit report.
But this month I took a look at the math:
My initial 1800 has ballooned to 6400 since 1995. Again, nothing tragic. But there's a 40% fee added by the collection agency included in that number. Meaning I really only owe about 3840.
If I stop paying, my school will take me to court to get a judgement right? If so, won't I just owe them the 3840? Because, if it came down to it, I think I could actually pay that off.
What's the right course of action here?