Should I make payments or ignore them?

Question

I owe a university money because I never ended up going, it was financial aid. This issue was transferred to an outside collection agency. I do not know what to do, should I start making payments or ignore it? Will they bother me more if I start making payments?

Update:

I do not owe loans or grants, it is financial aid. I did use it to get into a class and for books but didn't end up attending

MS · Accepted Answer

Contact the collection agency and make a payment plan.  They will continue to come after you if you don't, and will leave you alone if you are consistent in your payments.  It will hurt your credit score if you do not make payments, and that will affect your ability to get car loans, enter rental agreements, etc.

Richard · Answer

i wouldn't pay for something i didn't utilize

Fatima · Answer

I suggest that you contact the university's financial aid department, as well as the collection agency. Financial aid, even if not in the form of a loan, must be paid back if you withdraw from the university.

Ignoring the problem won't make it go away. It will only harm you later in the form of bad credit, increased interest (if the agency is charging interest on the amount), and even legal actions against you.

The best thing you can do is face the issue head-on, and contact the relevant departments. Explain your situation to them, and if you find that you still are required to pay back the amount (which you probably will be if they are asking you about it), then start working on a payment plan. The sooner you pay it off, the better it will be for you.

Hope the issue gets resolved soon!

sunshine_mel · Answer

Make payments

This issue ISN'T going to disappear just because you ignore it; and will get worse if you leave it.

drip · Answer

If you owe the money back, then it is a loan. From financial aid, a government student loan. Government student loans are part of your financial aid package.

Grants and scholarships do not have to be paid back.  So this must be a loan. Government student loans can be garnish from your wages.

It is too bad you didn’t officially drop out when you decided not to attend.

You need to figure who you owe and how much you owe.
Then see if you can do monthly payments.

Spock (rhp) · Answer

they will never give up.  consult an attorney in your state ...

Amaretta · Answer

If you didn't attend the class, you should have withdrawn from the class promptly. That "financial aid" was obviously in the form of a loan which you are expected to repay. (Financial aid is either in the form of loans, which have to be repaid, or grants, which do not have to be repaid.) The longer you delay repaying that loan, the more you will owe because the interest will accumulate. Meanwhile, it will affect your credit rating. So start repaying that loan in whatever amount you can afford each month.

Greg · Answer

So you were approved for financial aid to attend a university but did not go.  What happened to the money?  I'm confused.  Did you spend it on something else?  If so, you should go to prison for fraud.

Pearl · Answer

i would talk to them about it and explain that you never went

. · Answer

If you got grants or loans, hopefully you didn't spend it all.  Federal student loans can't be dispatched with bankruptcy.  if you refuse to pay, the government will garnish your income tax refund(s) until they collect the full amount.

Anonymous · Answer

They will get their money and the longer you wait, the more interest you will owe.

Should I make payments or ignore them?

14 Answers