How do I handle/settle paying a collection from Altran Higher-Education?

Story: I attended a 4 year uni, but I flunked my way out because I wasn t prepared at all. I was left with $3.8k in tuition debt owed, but I didn t have a job at the time. Eventually, the school sent my debt to a collection agency called Altran Education. The owed amount to the school was the principle amount... show more Story:

I attended a 4 year uni, but I flunked my way out because I wasn t prepared at all. I was left with $3.8k in tuition debt owed, but I didn t have a job at the time. Eventually, the school sent my debt to a collection agency called Altran Education. The owed amount to the school was the principle amount $3.88k, but since the transfer to a collection agency I now owe $4.88k. I now this because I got a letter from my school through the mail stating this account transfer. The letter arrived on Dec. 18 2018. I recently called them on the 8th of July 2019 (blindly) and I was told to either pay the full amount or pay $1000 with a monthly payment plan of $120. I gave him my checking account information (Routing num/ Account num) to make the payments.

Present:
I know I made a big mistake calling them without any knowledge about how these collection agencies operate and worst of all giving them my bank information. Given my situation, and I know it s not enough info for the people of Yahoo Answers to work with, what can I do to handle this situation. Should I pay the $1k and go through with it or should I stop everything and close my bank account or [Your opinion goes here]. What should I do now?
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