RE:

From: Karen Reddick (kreddick@ncmstl.com)
Date: Wed Jan 29 2003 - 11:05:53 EST

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    I have inquired with Department of Education regarding this matter. It is
    common practice for third party collection agencies to accept credit cards
    to pay off student loan debt and most of our College and University clients
    follow the same practice.

    Karen Reddick
    National Credit Management

    -----Original Message-----
    From: oa.kderouen {Karen DeRouen} [mailto:oa.kderouen@forum.utexas.edu]
    Sent: Wednesday, January 29, 2003 8:46 AM
    To: bursar-l@virginia.edu
    Subject: RE:

    Our collection agencies as well as the University accept credit card
    payments for loans at a collection agency.

    Karen
    *******************************************
    Karen DeRouen
    Loan Collections Supervisor
    Student Accounts Receivable
    The University of Texas at Austin
    (512) 232-4063
    (512) 471-0212 fax
    *******************************************

    -----Original Message-----
    From: Keith Fitzsimmons [<mailto:kfitzsim@kumc.edu>mailto:kfitzsim@kumc.edu]
    Sent: Tuesday, January 28, 2003 4:24 PM
    To: bursar-l@virginia.edu
    Subject: Re:

    >>> Linda Winslow <lwinslow@clarku.edu> 01/27/03 11:08 AM writes in
    part>>>
    It was my understanding that it was a Federal Law that Collection
    Companies could not allow a borrower to pay off their student loans using a
    credit card... this is illegal?

    Linda:
    Below is a response from one of our third party collection agencies, Credit
    World Services of Mission, Kansas. Hope is it helpful. Keith Fitzsimmons
    Univ of Kansas Medical Center

    <schappel@creditworldservices.com> 01/28/03 12:48 PM >>>
    Keith,
    I haven't ever heard of this rule before. Could someone let us know where
    it came from? We, like all other agencies that I know of, accept credit
    card payments. If you have a source, please send it to me and I'll check
    it out for you. Shirley



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