How should I deal with a University debt?
The university I attended for a semester back in 2007 is now demanding payment on the account of nearly $11,000. At least 2-3 thousand of this amount is due to finance charges from my refusal to pay for years. I never made enough money to begin monthly payments until this past year, and I have been fighting with negotiating with them.
I recently got a letter that they want to start collecting, otherwise they will hand it over to the Illinois State Offset System. I am wondering just how 'bad' this will be if they do, since I can't find much information online. The school is not willing to negotiate or reasonably settle at the moment.
My main concern is if it is handed over to the state to collect that this debt will show on my credit report. As of right now, I do not think the school has reported it. I don't really want an $11,000 debt on my credit. Also, aside from eventually taking me to court to garnish my wages, what happens when this sort of debt is handed off to the state? I live in Texas now, not the same state as the debt I owe. How do cases like these usually go, what would I have to worry about, and is it better to try and keep dealing with the school or tell them to go ahead and hand it over?