Legal Question in Credit and Debt Law in Georgia

Student Loan Overpayment

Georgia Military College notified me in March that they mistakenly over paid me $1200 in student loans. I advise them that I would pay the money back when I get my income tax return. However, they sent my account to a collection agency without notifying me and they added a 50% collection fee, increasing my balance to $1800. Before I throw away $600, I would rather pay a lawyer to represent me in this matter. My expectations follow:

1. I wish to pay back the amount of money that I was over paid, $1200, only.

2. Because the over payment wasn't my mistake, nor was I given ample time to pay it, I don't want this to negatively effect my cridit.

3. I don't want to be in fear of reprisal, ie..., not making my transcripts available, any further problems with student loans.


Asked on 4/17/06, 4:03 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Student Loan Overpayment

I don't think hiring a lawyer at this point is the best way to go. You won't get too much for $600 and there is certainly no guarantee that it will help. Make an offer, in writing, to immediately pay the $1200 in return for a clean credit entry. If they agree, make sure it is in writing, and then promptly pay. The reality is that even if you have to pay some of the collection fee, it will still be cheaper than a lawyer and it will still be better in the long run on your credit report. As for assessing blame (since you raise the issue), one thing is missing -- While you say it was their mistake, and they didn't give you much time to pay, when exactly did YOU become aware of the overpayment? Presumably, you would know when someone gave you $1200 too much. If you knew about the overpayment, or you should have known with oversight over your finances, it would be dishonesty on your part.

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Answered on 4/22/06, 2:12 pm


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