Financial Information
Can debt consolidation companies take debt from state universities?
Question : Can debt consolidation companies take debt from state universities?
I have a $ 5000 bill with a state university and must have it paid before I can attend classes. I’ve used my federal student loan eligibility, and have been told that federal student loans cannot be used to remove past bills anyways (nor can student loan consolidators take the debt).
I’m very close to graduating, just an error in judgement on my part caused a semester’s worth of student loans to be rescinded and the bill (with huge interest) has sat at the university for a few months without my knowledge.
So, I’d like to see if a standard debt consolidator would take the bill – and if not, where else I may turn. This is a pretty huge problem for me.
federal debt consolidation
Best answer:
Answer by Purple
yes, a debt consolidation company will take installment debt…but I want to let you know that these types of companies usually charge a fee..sometimes in the triple digits to consolidate your debt. And they are right…student loan consolidators can only take student loans..not bills from a university.
Before you run out and find another loan, and I’d start with a bank for a personal loan or an alternative student loan–SallieMae, I think, has one that can be used for prior year educational debt up to two or three years after the debt is incurred, btw, rather than a debt consolidator unless you can get really good terms, talk to the Business or Bursar’s Office at your school about a low or no cost payment plan. They may have one that you can set up through AFC to pay this off over time. But, be prepared here, the school does have the right to refuse to issue your diploma or to issue an official transcript while you owe them money.
If you contact me I will check with our loan specialist for the exact loan name and company for the prior year educational debt, although the specialist at your college is probably also able to tell you more directly.