From: Piper, Pat (ppiper@ufl.edu)
Date: Fri Sep 21 2001 - 12:04:16 EDT
Although I've heard of schools releasing a "student" copy, or "unofficial"
copy, our school releases only "official" copies, for whatever reason. We
too will release to a prospective employer, but not to the borrower for
re-enrollment purposes at another school as we feel we should be paid before
the borrower incurs more debt at another school.
A good collection effort will provide a borrower with other "good reasons to
pay" such as cleaning up their credit (with loan rehabilitation, etc.) so
they can buy a house or car or other major purchases. Avoiding the
consequences of a lawsuit would be another good reason to pay.
Pat Piper
Administrative Services Coordinator
University of Florida
University Financial Services
S-113 Criser Hall, PO Box 114050, Gainesville, FL 32611
(352) 392-0766 Fax: (352) 392-3448
ppiper@ufl.edu <mailto:ppiper@ufl.edu>
> -----Original Message-----
> From: Patricia Swartz [mailto:pats@colonel.csc.wilkes.edu]
> Sent: Friday, September 21, 2001 9:35 AM
> To: Piper, Pat; bursar-l@virginia.edu
> Subject: Re: FW: Bankruptcy
>
>
> Can't we just release a student copy of the transcript? If
> the student is
> looking for an official transcript to go to another school (I
> would release
> one to an employer), and receives the transcript, they will
> still owe the
> money to us after the bankruptcy, but will not have a good
> reason to pay it
> off, since they have the transcript that they wanted...
>
> Patricia Swartz <pats@colonel.csc.wilkes.edu>
> Loan Correspondent
> Wilkes University
> Wilkes Barre, PA 18766
>
>
>
> At 08:14 AM 9/21/01 -0400, Piper, Pat wrote:
> > > WHOA! Hold the fort! I hope you're not needlessly writing
> > > off debts that are not dischargeable in bankruptcy. Just a
> > > reminder, all student loans and some "educational benefit"
> > > receivables are non-dischargeable in bankruptcy due to
> > > Section 523(a)(8) of the Bankruptcy Code, unless the borrower
> > > receives a discharge based on "undue hardship". In order to
> > > do this, the borrower must initiate an adversary proceeding
> > > and obtain a judgment from the court. A copy of the
> > > Discharge of Debtor does not discharge these debts and they
> > > are not "forgiven" by the court.
> > >
> > > Regarding Ms. Foland's questions, withholding services during
> > > bankruptcy is a complex issue that has been tried with
> > > different results in different jurisdictions. Our current
> > > policy is to maintain holds on all delinquent accounts, but
> > > if a borrower contacts us for transcripts, we will usually
> > > release them to avoid violating the automatic stay provided
> > > by the bankruptcy. And, transcripts are usually used to
> > > obtain employment and in the long run, it is to our benefit
> > > for the debtor to get a good job since we will have the right
> > > to get paid in full after the discharge. And, of course,
> > > after the discharge, holds can continue to be maintained for
> > > delinquent accounts and transcripts can be denied without penalty.
> > >
> > > My recommendation would be to check with your attorney for
> > > more specific guidance on how to proceed with pending
> bankruptcies.
> > >
> > > Pat Piper
> > > Administrative Services Coordinator
> > > University of Florida
> > > University Financial Services
> > > S-113 Criser Hall, PO Box 114050, Gainesville, FL 32611
> > > (352) 392-0766 Fax: (352) 392-3448
> > > ppiper@ufl.edu <mailto:ppiper@ufl.edu>
> > >
> > >
> > > > -----Original Message-----
> > > > From: McCue, Cathy [mailto:CMcCue@iona.edu]
> > > > Sent: Thursday, September 20, 2001 3:08 PM
> > > > To: bursar-l@virginia.edu
> > > > Subject: RE: Bankruptcy
> > > >
> > > >
> > > > Cathy,
> > > >
> > > > In response to both of your questions, the only reason that
> > > > we place "holds"
> > > > on student's transcripts or registrations is if they have a
> > > > balance owed to
> > > > the school. With a bankruptcy, the court has forgiven the
> > > > debt, so nothing
> > > > is owed. I don't believe that we can legally collect the
> > > > money or still
> > > > make the student responsible once this has happened.
> > > > Therefore, we really
> > > > have no reason (or right?) to keep a hold on.
> > > >
> > > > I DO require a copy of the Discharge of Bankruptcy to
> > > > write-off the account.
> > > >
> > > > Cathy J. McCue
> > > > Bursar
> > > > Iona College
> > > > New Rochelle, NY
> > > >
> > > >
> > > > -----Original Message-----
> > > > From: cathy foland
> > > > To: bursar-l@virginia.edu
> > > > Sent: 9/19/01 5:40 PM
> > > > Subject: Bankruptcy
> > > >
> > > > I am interested in finding out what other schools do with
> > > students who
> > > > owe past due debt and who declare bankruptcy.
> > > >
> > > > 1. Do you release transcripts to students whose accounts are in
> > > > bankruptcy? What if a "hold" was already in place to block
> > > the release
> > > > of a transcript to the student before the notice of
> bankruptcy was
> > > > received?
> > > >
> > > > 2. Do you permit students whose accounts are in bankruptcy
> > > > to register
> > > > for classes? What if a "hold" was already in place to block
> > > > the student
> > > > from registering before the notice of bankruptcy was received?
> > > >
> > > > Thanks to all who respond!
> > > >
> > > > --
> > > > Cathy Foland
> > > > Associate Bursar
> > > > Office of the Bursar
> > > > Southern Illinois University Edwardsville
> > > > Phone: (618) 650-3131
> > > > Fax: (618) 650-2971
> > > > Email: cfoland@siue.edu
> > > >
> > > >
> > >
> >
> >
>
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