Student loans....defaulting, etc...

Discussion in 'The Okie Corral' started by OXCOPS, Jan 15, 2010.

  1. OXCOPS

    OXCOPS

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    Its been a decade since I left college. I was fortunate enough to not have to get student loans for my undergrad degree. Now, I am tossing around the idea of graduate school, but will have to have it all paid for through scholarships and loans.

    I get the difference between sub and un-sub loans. However, I have always wondered what happens if you default on your loans.

    You default on your car note, they take the car. The house? Same thing.

    They can't take your degree, so what recourse does the lending institution have against defaults?
     
  2. Mrs. Tink

    Mrs. Tink Semper Fidelis

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    It's my understanding that new bankruptcy laws do not allow you to have student loan forgiveness; basically, you have to be totally incapacitated to get out of them.

    I don't know if they garnish wages or what to get you. :dunno:
     

  3. Ol Timer

    Ol Timer ↓ hog hunter ↓ Millennium Member

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    One thing they do is work with the IRS so you'll never get a tax refund until it's cleared. I'm sure there are other creative ways they work, also.
     
  4. fyrecrotch

    fyrecrotch

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    Lobotomy.
     
  5. OXCOPS

    OXCOPS

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    Since the Stafford loans are through the .gov (I think), I could very well see this.
     
  6. OXCOPS

    OXCOPS

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    But I don't wanna be a congressman!
     
  7. FLIPPER 348

    FLIPPER 348 Bigfoot enthusiast enthusiast

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    They will garnish your tax returns at least. An honest man such as yourself would never have to worry about such things though.
     
  8. blueiron

    blueiron

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    They can garnish your wages, withhold any federal payments to you - including tax returns, wages, retirement benefits, etc.

    They are using private collection agencies to do the collection efforts and taking your credit scores.

    You cannot declare them under any bankruptcy proceedings.

    I am paying for my current degree out of pocket and ignoring the debt route.
     
    Last edited: Jan 15, 2010
  9. Gallium

    Gallium CLM

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    Chief of Pi..Police? :tongueout:
     
  10. Gallium

    Gallium CLM

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  11. OXCOPS

    OXCOPS

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    I wish I could afford to do the same this time around. The financing is the major deciding factor right now.
     
  12. HerrGlock

    HerrGlock Scouts Out CLM

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    Ask 'em

    http://www.ed.gov/offices/OSFAP/DCS/index.html
    Addressing Your Defaulted Student Loan


    Options When in Default
    Student loan borrowers in default now have more options than ever before to repay student loans. The U.S. Department of Education's (Department) Default Resolution Group is committed to assisting you by making debt repayment a simple process.

    Make a payment
    If you have a defaulted student loan held by the Department, you can mail a check or money order to the Department's Payment Center. You can also make a payment now by credit or debit card. We accept American Express, Discover, Master Card and Visa as payment options. Please contact the Default Resolution Group at 1-800-621-3115 to process your credit card payment.

    This site will provide you with information on the repayment collection of the following loan and grant programs:

    * Federal Family Education Loans (FFEL), which include Federal Stafford, Federal Consolidation and Federal PLUS loans. When placed in default and not repaid, these loans will be assigned to the Department's Default Resolution Group for collection.
    * Direct Loans, which includes Federal Stafford, Consolidation and PLUS loans that are offered through the William D. Ford Direct Loan Program. This includes TEACH Grants that have been converted to Direct Unsubsidized Loans. When placed in default, these loans are assigned to the Department's Default Resolution Group.
    * Federal Perkins Loans. When placed in default, Perkins Loans may remain with the school or be assigned to the Department for collection.
    * TEACH Grants, Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Academic Competitiveness Grants and National SMART Grants. In certain instances, you may have to repay part of a Federal grant that was awarded to you. When repayment is required, these grants are assigned to the Department for collection due to an over award payment or the recipient withdrew from the eligibility program early.

    If you are not sure what type of loan or grant you have, check your original loan/grant document(s) or use our National Student Loan Data System. If your loan/grant is not one of the loans/grants listed above, the information on this site does not apply to you.
     
  13. aspartz

    aspartz

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    If Jimmy Hoffa was behind on a student loan, we would know where he is.

    ARS
     
  14. Easterbrook

    Easterbrook Wagon Burner

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    In addition to what's mentioned above, they can garnish your wages, take your car, your boat, your home depending on its value, your RV, guns, money from your bank account, pretty much anything of value, and make your kids cry and your wife leave you.
     
  15. Gary W Trott

    Gary W Trott Prickley Fan

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    Garnishments, levies, attachments, liens, etc...
     
  16. blueiron

    blueiron

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    Levies are for unpaid taxes.

    Attachments and liens do not apply either.
     
  17. blueiron

    blueiron

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    I pay for what I can as I go. At my age, debt isn't a wanted option.
     
  18. airmotive

    airmotive Tin Kicker

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    Student Loan Repo

    [​IMG]
     
  19. Gary W Trott

    Gary W Trott Prickley Fan

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    Levies are not just for unpaid taxes. A creditor can go to court to recover an unpaid debt and if the judgement is in their favor they can serve a levy on the bank account(s) of the person who owes them the money. A lien can also be placed on an asset owned by the person owing the money following the same process. "Attachment" is just another word for "garnishment" so while redundant it was still correct. While these things are usually I believe options of last resort in the debt collection process they are none the less options in that process.
     
  20. Gary W Trott

    Gary W Trott Prickley Fan

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    I'd say to pass on it if one of your concerns about whether or not to apply for the loan is the repercussions that will occur if you default on it. If you aren't sure that you can pay it off then you should not be borrowing.