Unpaid tuition got sent to collections. Any advice?

Posted by peaceyulu@reddit | studentloandefaulters | View on Reddit | 8 comments

I was an international student at a university in America from 2019 to 2024. I never had a SSN or ITIN. I paid nearly 400K USD over the 5 years I was there. I couldn’t pay the tuition of my last semester (18K USD + 10% interest) when I had less than 10 units left. My father died during that time, finances fell, a lot of things got ceased. We were basically dragged onto the streets.

I finished my classes (my college only puts holds to register for the next semester if there’s an unpaid balance and nothing in the current semester) My I-20 ended in May 2024 and I left the country on my own terms.

My college emailed me a few months back that they assigned my tuition to a debt collector. I freaked out and told the debt collector that I’ll make a payment and I’ve already asked them 2-3 times for extensions. However, I’m still not in a place where I can pay. They’ve been emailing me constantly saying “make a payment by the end of this month to keep your account in collections and prevent any further escalations.” I really want to pay and I for sure will pay as my college has withheld my documents from me and I need them. However, I don’t think I can do it in the near future as my current situations do not let me have the leverage to pay 18K + interest accumulated. We’re drowning in loans and had to take a gold loan to even run the household.

Like I said I never had a SSN or ITIN, I don’t have a valid American visa to go back, don’t have any income / assets in America, no US address. What’s the worst that can happen to me?

Again I 100% will pay, I spent so much money and time on my degree and I’ll not let my diploma go. The issue is the when. I never thought I’d be in this position. Please any advice is appreciated.

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TheRealAMD@reddit

Being that this is with a US collection agency right now, you're probably fine. Your US credit history doesn't follow you internationally, except to Canada in limited circumstances. The way it could affect your credit score at home would be if the debt was either assigned to or sold to a collection agency or lawyer in your home country. Usually this doesn't happen unless the debt is very large (6 figures), you have assets, or the creditor thinks there's a very high likelihood of being able to coerce payment some other way (e.g. you're from a Middle Eastern country that treats default as a criminal matter, such as Bahrain or the UAE and they can use the threat of prosecution and jail time.)

With that said, if you ever did want to return to the US in the future, as a student or on a work visa or for any other reason, it would most likely behoove you to resolve this though. Under this current administration, your prior US credit history (not the FICO score per se but whether you've satisfied your obligations) is now one of the criteria factors into whether you meet the "good moral character" requirement for a visa. And even if the debt reaches statute of limitations and becomes uncollectible from the standpoint of a lawsuit, USCIS and DHS will likely still be able to see it.

Substantial-Rich-460@reddit

Gaslighting OP ^^

tiniest-muffin@reddit

If you don’t live in America anymore and don’t intend to again, don’t pay it and don’t worry about it. Collection agencies are designed to scare you. They want you to think something bad is going to happen but the truth is, the college sold your debt to the collection agency, for a fraction of what you actually owe. The collection agency makes their money by bullying you and scaring you into paying them the full amount

SettleBankDebt@reddit

As a debt negotiator the file could be sent to a collections attorney, however whether they file a law suit against you with no known address is any body's guess. There are ways to prevent any further action, but you shouldn't lose any sleep over it if you are dealing with more pressing household issues.

bit_freak@reddit

If the known address is foreign as in this case, can collections pursue or file a lawsuit in another country?

Can they send to an attorney in your country? Yes, however the question is, will they? Probably not, but DO NOT rely on my advice as a non attorney and I wouldn't worry about it unless it becomes a real threat other than an annoyance.

shitlord_god@reddit

Coollections agencies have a LOT of flexibility and just want some kind of payment. They only get freaked out if you stop talking to them because if there is no communication for x years it becomes harder for them to pursue that debt.

You have no assets in america, no tax rebate in america, no SSN or ITIN, What are they going to garnish? Why does your american credit score (Which you might not have anyway because no SSN/ITIN) matter?

Not a layer, not legal advice, but genuinely curious about what recourse would be available to pursue that debt.

peaceyulu@reddit (OP)

I believe they’re only representing my college / acting as a middle man.