How should I deal with my tuition reimbursement contract?

Question

I worked for a company that gave me $1,500 towards some of my tuition costs. Part of the agreement with the company that I signed says that I'm obligated to reimburse the company for that $1500 if I have voluntary/involuntary termination within one year from completion of the course. I completed the course in December 2005. I voluntarily left the company in May 2006. So, the company wants the money back.

After reading over the entire agreement many times over, it only says I'm obligated to reimburse them, but it does not give a time period or payment schedule, so I assume I can pay them $1 a year for the next 1,500 years if I wanted to. Of course, they don't like that idea and threatened to take me to collections (which may or may not hurt my credit score - I don't know).

I don't particularily like the company. What can I do to maximize my rights? Can I tell them I'll give them $10/year for the next 150 years and if they have a problem with it, take me to court?

Also, if they send it to "collections" what would be my rights?

Answer 1

When a contract is silent as to time it assumes a reasonable time. What does that mean? ****, beats me.

Since you acknowledge that debt, you would only have the government's laws against harassment by debt collectors to protect you. They will ruin your credit, garnish your wages, and seize any bank accounts or other assets that they can reach.

Answer 2

Companies make these sort of arrangements, because if they are going to pay for your education, then they deserve some benefit in return for that, in what the education would do for you as an employee. If they didn't, people would feel free to let them pay for thier education, then take the benefits of that education to a better paying job at another company, is that fair? The company that was willing to offer you an education deserves some benefit out of training you. If they didn't write a payment schedule in to the contract, you should regard it as due on demand like a promissary note. That you don't like the company is irrelevent. They paid for your education. You didn't hold up your end of the contract, and they didn't receive the benefit they expected to receive out of springing for your additonal training, which you have now offered to another employer. You owe them reimbursement, and should do so as cheerfully and promptly as possible. You should work out a payment plan with them, but don't drag things out unecessarily.

Answer 3

As an Indentured Servant, you would be obligated to pay it back.
Sounds like a one-sided deal to keep employees from leaving.
I have a neighbor that works at Home Depot. Do you know how that big box o' slime gives out raises? Sure she got .25/hr increase. After 6 months,IF SHE IS STILL THERE, she gets a whopping lump sum bonus check. Yep, $260.
Will she spend it all at WalMart, or invest it in her retirement fund. She just is not sure.
I personally would just ignore them.

Answer 4

I would say you signed an agreement, pay the money. Get it over with, take your lumps and hit the road. Do the right thing.

Answer 5

NOW THIS IS A GOOD QUESTION! REALLY JAS