Can my employer collect $18K from me for tuition $ received? Signed contract says I owe $ untl 2 yrs post-grad

Question

I signed a contract that states IF I leave after my graduation date through 1 year post - I owe 75% of what was provided for tuition reimbursement. If I leave after 1 year post graduation but before 2 years - I owe 50% of what was provided back to the company. Only after 2 years post graduation date are there no payback penalties. My question is by what means will the company collect $18K from me. I understand that they can withhold my last paycheck - no problem, but what will be the terms of repayment under that say - couple thousand dollars withheld from pay ? Will I be offered a payment plan ? If so, what terms and interest rate ? Will I be forced to take a private loan immediately to pay the balance ? Or is it possible that there is not much legal action that can be taken beyond withholding my final paycheck ? If anyone has any real world example or legal perspectives to share with me - it is greatly appreciated. Sincerely, A Concerned Grad Student (received degree in December!).

Answer 1

If you do not stay, most employers will not offer you a payment plan. they will sue you for the full amount, and if necessary garnish your wages until you pay

Answer 2

If you aren't willing to commit to the contract of 2 years of employment there then don't sign then don't work there.  Probably only someone from the HR dept will be able to answer this question for you.

Answer 3

My employer will sue you for breach of contract.  I've known it to happen.  The judge can enter a garnishment of wages and it will tarnish your credit report, quite severely, I believe.  They may offer a repayment plan with interest and expect the payments to be higher than what you would have paid through the government.  Just make sure it's worth it.  Your employer probably has this outlined for you if you ask.