Students unnerved by former school calling for debt collections
Mid-Continent University students say they’re hearing from their old school about the money they owe. The school is working through Chapter 11 bankruptcy court.
Later this month, a judge will decide whether Mid-Continent can hire an attorney to help collect on student loans or turn those loans over to the United States Trustee. Students say they have already been threatened with collections, and a former student says she’s at a loss emotionally and financially.
Crystal Carter wanted a better job and to improve life for her and her kids. “I don’t know what to do," she says. "I know I need to sign them, because I don’t want them to go to collections.”
But now Carter she says she’s being bullied by those she trusted with her expensive education. “I don’t want to sign anything with them," she says. "I don’t want to sign anything to do with them.”
She says she called for information when the university closed, but Carter says months later they’re calling her for the first time. They told her she owes more than $7,000 for many school credits she says she can’t even use.
“It’s still confusing, because they’ve got amounts wiped out and added amounts, and I just need to check," Carter says.
A member of Mid-Continent University’s legal team, Mark Whitlow says students should have received four packets, but Carter only received one.
“The statement they sent is so off the wall, I can’t keep track of what is actually owed," Carter says. She says until she knows her bill is legal and legitimate and the school’s financial future is stable, she’s not picking up the phone.
Whitlow says the school is still looking to collect on almost $13 million in student loans from more than 1,100 students. He says they sent the packets per the attorney general’s advice first and follow-up letters after the fact. But, they do not expect to collect on all $13 million, because some of that is not classified as "collectable.”
The judge will rule on whether Mid-Continent can hire a collections attorney later this month.