Legal Question in Education Law in New York

I am currently a non-working full-time student. but prior to that i attended a school for two weeks and then when i found out that financial aid would cover the rest of my tuition the school told me that i had to leave or in other words withdraw from the school. So i do the process that it takes to withdraw, then 3 months later i get a notice stating that I owe the school $4,000. I called them and they told me its because i withdrew late so i had to pay, ect,ect. In March we worked out a paymeny plan so i can start to slowly pay them. Now the payment plan was accomodated to thier liking. I brought them my pay stubs to show them that $200 a month was to much and i could barely reach that on my stub. but they did not care to look at it or understand that i was not financially stabled. so I make four payments and after the fourth month i spoke to them and told them that i couldn't make the payments anymore because there was a job cut at my job and i was one of the unfortunate ones. they said okay we'll have to take this matter up with collections now because your not going to be paying.--like they totally made it seem like i didn't want to pay. Like i do want to pay my balance i just asked for a decrease in the monthly payments cause i couldn't do that amount anymore. SO it is now October and a collection agency calls me and tells me that the school send me over to them and they would like to work a payment plan. SO i said great since the school cant help me, then ill get help from this collection company. We set up a plan the collections states that I need to make an $800 deposit b4 i can start paying 100 a month. And i thought that was absurd. And also on top of that the school added an additional $1340 to my account. and they state it was because I stopped paying, but to my understanding that amount accumulated from the time that I stopped paying until the time they send me over to collections and that's wrong of them to do that because i told them plenty of time in advance, so what they should of done is send me over to collections right away instad of waiting till september.--Now I do not plan on attending this school in the future nor do I want anything to do with them,--I am enrolled as a fulltime student at another college--and my question is are they allowed to start charging me for this amount that i owe even though Im still attending collehge fulltime.?? i mean I dont need transcripts or anything from them, so do i need to pay this balance right at this moment.?

Asked on 10/12/10, 7:30 am

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