Bankruptcy is Wrong But I Don’t Want to Pay My Christian College

Question:

Dear Steve,

My Situation is very similar to the situation in this post.

The main and only difference is that I completed one year of school at a Christian private school, and it was towards a degree in Bible. I now want to return to school, but towards a business degree. I might have a couple gen ed credits that can transfer but that is it. I would much rather wipe the slate clean and start over. (PS my grades were fine) … My main issue is that I still owe $6400 to the school, this is what wasn’t covered by my fed loans and grants. I have talked to every school I can think of but every school requires my official transcripts. From my understanding any school I try to start with (including community college) will ask if I have attended college before, and if I say I have they require official transcripts, and if I say I haven’t attended school before then if they find out it would break the code of ethics I signed and forfeit any credits.

I talked with the school holding my transcripts and they would settle for $5200, but this is way more than I’d want to pay for credits I can’t even use. I know filing for bankruptcy is an option to get my transcripts, but OF COURSE, I don’t want to do that.

I followed all the advice in your previous article about this, but the state didn’t help, and school won’t settle further. You did mention something about starting over but couldn’t find anything else about this.

Can I have my official college transcripts deleted and just start over?

Jonathan

Answer:

Dear Jonathan,

Okay, I’m curious, why isn’t bankruptcy an option you are willing to consider to accomplish your goal?

If you are “OF COURSE” not considering bankruptcy because you feel it is wrong because of your beliefs, then accepting a settlement or not paying the debt would be just as wrong.

But from your question, it is really not all that clear what your objection is to bankruptcy ending the old college debt you can’t afford to get your transcripts. What specifically is the objection?

You seem to be willing to start over so why not just go that? Keep in mind the old debt to the previous school will probably grow with building interest and collectors may chase you into the future.

There is nothing to prevent you from moving ahead with new education and skip claiming any transfer credit from the old school.

Steve Rhode
Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.