Here's the Thing...

[Chptsevenchains]

An accounts receivables debt from my University was discharged. !!!It is not a student loan!!! nor is it the result of a student loan!!! It is a tuition debt that was inaccurately assessed in 2003 by my University and I fought it diligently for the past 4 1/2 years. It has a lot to do with the Title IV school code - - yada-yada-yada but it was sent to an external collections agency, my Attorney felt confident with including it as a collections debt and she also added the University for notification. During the petition stage, the school refused my request for an official transcript (possible problem number 1) and now after discharge, the school says that even though it is listed as a discharged debt; that it isn't because "school" debt cannot be discharged...

I can't afford to pay my attorney to take this to court, but I need help; they are holding my degree and have not updated my graduation records.

[HHM]

Do a search on this forum, probably try "student transcripts" or something like that. This issue has been discussed extensively, and there are some really good posts on how to handle the issue.

[lrprn]

Sorry to be the bearer of bad news, but unfortunately a bankruptcy court decision McKay v Vanderbilt University, Adversary no. 07-3182 that was confirmed in 2007 by a US District Court judge stated that when an educational institution provides consumer credit to a student for any purpose, that credit does become a non-dischargeable student loan.

See http://www.************************/...rom-discharge/ for a lawyer's blog discussion of the case and the logic the judges used to declare this type of credit extended by the university a "student loan".

If the university charged you this sum in error, then that's where the fight needs to be. You aren't going to win the "not a student loan" argument - whether it's fair or not, the courts are on the university's side.

[Chptsevenchains]

If the university charged you this sum in error, then that's where the fight needs to be. You aren't going to win the "not a student loan" argument - whether it's fair or not, the courts are on the university's side.

The problem with this scenario is, in 2005 I received a letter saying that grants that were awarded to me, but I did not accept were reversed due to the the Title IV school code for under admission. and were now a balance. The balance went from $96 to $3500 in a course of 3 months because they added amounts from Fall of 2003 through Spring/Summer 2005. Because I was no longer a student, I wrote them back assuming that they were referring to loans that I had consolidated, it wasn't until then that I recognized all of the crazy fees - and they won't remove them. It's not an educational benefit because I wasn't a student at the time...

[lrprn]

The balance went from $96 to $3500 in a course of 3 months because they added amounts from Fall of 2003 through Spring/Summer 2005.

Were you a student between Fall 2003 through Spring/Summer 2005? And what were the "added amounts" that you mentioned for?

[Chptsevenchains]

Were you a student between Fall 2003 through Spring/Summer 2005? And what were the "added amounts" that you mentioned for?

I'm sorry for not being here for a while. To answer your question, (and this may be rather lengthy) I completed my coursework and walked across the stage on 12/2003. I considered taking prerequisite classes for a Graduate program in 1/2004 and registered. After deciding that I did not want to take the classes, I withdrew 1 week later and was still charged registration and omnibus men fee ($96.00) I paid the $96.00 in 2/2004. When I requested my degree, I was told that there was a hold on my records due to a tuition balance. The first amount was for $1790 for the classes I registered for in 1/2004 but withdrew (well within the tuition assessment period) I called and spoke with a Financial Aid Rep, who removed the balance from my account, but attempted to charge me $96.00 (of which I already paid in 2/2004) I called again and was told that while they would remove the $96.00 that I was still liable for the $1790.00 because I was given a Perkins loan of $1500.00 and pell grant for $1100.00 that had been reversed in 2004. I explained that I did not take any funds for this term because I withdrew prior to the assessment deadline. They removed the $1790.00 balance only to re-assess it in July of 2004 along with an additional $1180.00 for classes that they stated were dropped in 2003. I had already received a Title IV tuition deduction in 2003 making me responsible for $640.00 of which was repaid prior to my final semester in 12/2003.

They assessed the debt as being a reversed "loan" and sent it to collections on 8/2005.

[Cali]

If you never received the money, how can they say you owe the money? If someone is awarded FA and they don't take it, the school is suppose to send the money back.

[Chptsevenchains]

...And this is why I am fighting and have been for nearly 4 years
I have sent them copies upon copies of paperwork to support this; but they are not complying. Even during my bankruptcy petition, they refused to give me access to my official Transcripts.

I need something; someone to help me make sense of this, I need my Degree in order to gain better career opportunities

[lrprn]

...And this is why I am fighting and have been for nearly 4 years
I have sent them copies upon copies of paperwork to support this; but they are not complying. Even during my bankruptcy petition, they refused to give me access to my official Transcripts.

I need something; someone to help me make sense of this, I need my Degree in order to gain better career opportunities

Right now case law decisions are on your side - see http://www.newyorkbankruptcylitigati...dischargeable/

Sounds to me like the university has made a mess of your financial records - that's why resolved debts keep reappearing. Do you have any of the changes they promised in writing or have you done all this in person and through phone calls?

You've been working hard on this problem for four years and haven't been able to resolve it on your own. I suggest paying for an hour of an experienced bk attorney's time to get on top of this ongoing problem. If you can't afford $350, then work with Legal Aid if that's available in your community.

It's amazing what can happen when a university gets an official letter on letterhead from a lawyer listing multiple court precedents in your favor and cautioning legal action may be pursued if they don't release your transcript immediately while this is sorted out. Keep us posted about what happens, ok? Hope this nightmare will finally end for you very soon!

[Chptsevenchains]

Thank you for the articles. I am preparing my request and hopefully, I can find an Attorney that will go after the school for fees. I will keep you all posted...

[Cali]

I will send you good vibes.

Thank you for the articles. I am preparing my request and hopefully, I can find an Attorney that will go after the school for fees. I will keep you all posted...