A collections attorney can begin to pursue former Mid-Continent University students’ debt. A judge made that ruling Tuesday during a hearing in Louisville.

Collection attorney Randy Slovin and associates will start sending out notices within 30 days, but only for students living in Kentucky, Indiana, and Ohio. At the hearing, Mid-Continent CFO Tim Walker said they owe $4.3 million.

Walker says they need to continue student loan collection for several reasons. The university has extensive documentation of students’ records and bills, their work with the attorney general, and Walker said if the school wasn’t allowed to go after the debt, it would be unlikely the school could pay back their debt to the trustees, former employees, and staff.

Slovin and associates will get 28 percent of all loans they collect from students. For $4.3 million, that means Mid-Continent will pay $1.2 million to collectors —money that won’t go towards their debt.

Slovin testified Tuesday. He says as part of his collecting on student debt, he would keep a log of all communication with students.

Mark Whitlow, the school’s lawyer, says: "It’s a very important part of our plan of liquidation to collect money for employees and other creditors of the university."

If students do not reply to the collection notices, Whitlow says they open themselves up to a lawsuit. The school plans to speak to other attorneys about collecting debt from students in other states.

The United States trustees can file an objection to the judge’s order. There is no time limit for Slovin and associates to collect on student loans.