Tuesday, September 10, 2013

Student Loans – When Should A University Commence Suit Action Or Is It Appropriate To Sue Ex Students?

When it comes to collection for student loans and money owed to the university, sometimes the educational institution may find itself with two options.  The first one would be stay with collection efforts or go for suit action.  While you may think that a lawsuit may get the attention of the person more than a collection effort, in reality it is a lot better to stick with collections.  There may be many different reasons why the student has not made the necessary payments for the outstanding amount.  The problem is that not every collection agency will take that into consideration. 

Getting The Attention Without A Lawsuit

If a student has been dealing with the same collection agency, they may not feel as if there is anything else that the collection agencies can do other than to give them an annoying call a couple of times a day.  One good strategy to try to get the attention of the person who owes the money is to switch from an agency to collection law firms.  You are not yet starting a lawsuit against the person.  However, the fact that you are actually talking to collection lawyers may be enough to at least start some start of payment plan. 

More Flexibility


Sometimes agencies will not pay much attention to the needs of the student so it is important that if you use collection attorneys that you use the right ones.  The attorneys should be ready and willing to listen to the needs of the person while at the same time collecting the money that you need coming in.  By actually listening to what the person has to say and what they can actually do, it is a lot more likely that the payments will start coming in.  So before you try to go for a lawsuit, make sure that you talk to collection attorneys first.  

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