My daughter is a senior in High School this Sept, so I’m trying to get out of debt and raise my credit score , because she wants to go to college. I went to the “Equifax” to get my credit report. I have 18 minus things. One of them is an old T-Mobile bill. I just received a settlement offer yesterday from a collection company to pay half of the balance to close this. but I’m wondering, will it look worse on my credit report is I pay the settlment offer instead of the whole amount? I’m not sure what to do. Please help!

cellularWhat would your credit score have to do with your daughter going to college? You are not thinking of taking out a student loan for this, are you? Pay cash and you don’t have to worry about any of this….. Doesn’t she have a job? Yes, settling is a good thing. Why pay more when they are offering it for less?

You said this T mobile bill is old.. how old? if its over 5 or 6 years the statute of limitations in your state may apply and they can no longer collect or else just ride it out another year or two until the 7 year mark and it will fall off of your record. Your credit score should’nt have anything to do with your DD going to college. She can apply for her own student loans, scholarships and grants etc.

You dont sound like you are in a position to pay for it so dont even try. She’ll get into college no matter. If you got your credit report from Equifax or any of the other major credit reporting agencies those negative things should have a date next to them telling you when they will no longer be posted to your record. I don’t know about the T Mobile thing, but I do know it’s really hard to just pay cash for tuition these days.

If you guys are in a tight financial situation, your daughter may want to look at going to a community college for her first two years, and then transferring to a 4-year university. Some universities have transfer agreements that spell out exactly what students need to complete in community college, and then they are basically guaranteed a spot. Also, be sure she turns in the FAFSA by the early deadline in 2009 (usually March 1), because she might be eligible for lots of grants. I pretty much paid for my first year in college with scholarships and grants because my mom was *broke* and we qualified for lots of government money. It’s always a good idea to improve your credit score, too. 🙂

Unless you’re going to a community college, it’s going to cost a minimum of $40,000 for four years of college including books, room and board, etc. And then if you go to a crappy school as I did, future employers don’t even look at resumes from students of those schools.

$40,000 = $10,000 each year or $850 a month roughly? Part time job for daughter? I would assume that if she chooses the community college for two years (wise decision) this would go down. Also, if she chooses a school close to home you can cut out the room and board. More savings.

Let me tell you, it sure beats looking in the face of a $70,000 student loan 22 years later and trying to stare it down. I have that balance up on the fridge so my kids can see exactly what a student loan does to you….. It governs how much I can feed them, what clothes they can have, we HATE that thing with a passion.

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