University of Pennsylvania has dragged many students to court for defaulting on their loans and tuition fees.
Pennsylvania is not an isolated case. Many other colleges have also resorted to legal proceedings against students for non-payment of bills.
According to reports, in November, Penn moved the Philadelphia Court of Common Pleas seeking the judiciary's help in recovering the money from defaulters. It filed as many as, six lawsuits demanding repayment of amounts ranging from $13,200 to $26,800.
"If students graduate or leave the University with an outstanding balance, their debt will be transferred to the University's Collections Office," said Marlene Bruno, spokesperson for Student Registration and Financial Services, in an email, reported The Daily Pennsylvanian.
Bruno also noted that students failing to repay their dues on time would increase their debt over time. "Balances remaining beyond the due date are subject to a late-payment penalty of 1.5 percent per month," he said.
In the past, the likes of Yale University have also moved the court against the students over non- payment.
Temple University is also suing the students for the same reason, with legal help of the same attorney consulted by the Penn, reported TDP.
Temple University has explained the set terms and condition for students to borrow credit for education. Meanwhile, it has also highlighted the consequences of non-payment of credit on time, including filing lawsuit against them.
These are the consequences listed by university.
Students may not be able to obtain more credit, (i.e. to buy a car or house.); they may be turned down for a credit card; will forfeit tax refunds; employer can be ordered to withhold what you owe from your paycheck.
If a student leaves or graduates from the college with an outstanding balance, the debt will be transferred to the University's Collections Office, which will decide whether to hire a debt collection agency or contract a law firm to sue the indebted student, revealed TDP.
