Thread: US student loans

Let’s say that I know this friend who has not paid back his student loans from the states. While Uncle Sam paid most of the education, a loan of about $10,000 was not paid back.

Fast foreword to 15 years later. This friend is living in BKK and gets a phone call out of the blue from the Federal Student Loan Program. Strange, yes they are slow, but how did they know?

The government now wants $34,000. My friend was nice and polite and said ‘WTF?” Since they already had my friend’s phone number, he gave them his BKK address and said please snail mail the particulars.

My advice to my friend:

• The US government can’t do shit!
• The US government could hire a Thai collection agency. Then my friend could have problems.

Your advice?

The student loan can be withheld from your friend's Social Security or other Federal benefit. The interest will continue to accrue.

Thai collection agency wouldn't have jurisidiciton - so he could tell them to get farked

Originally Posted by buad hai

The student loan can be withheld from your friend's Social Security or other Federal benefit.

Only up to 10% I think.

In most US states most debts can only be legally collected within 7 years of when they were incurred. However, the Feds may have given themselves an exemption.

The big question in my mind would be, is this debt really being collected by the government, or have they sold it to a collection agency? A lot of collection agencies will pose as the original debtor rather than identify themselves as who they really are. If it is a collection agency, tell them to F off. They are real scum.

I paid my student loans off years ago, so I don't have any experience with this particular problem, but often the government, the IRS in particular, will make a deal - say forgive the interest if you (or your friend) will pay off the original amount, or sometimes even a lower amount.

My advise is to pay your debts.

^ At 34,000 I am not sure he can.

He could call/contact and try to make a deal.

I don't know.

Several laws/decisions apply:

Lockhart v. U.S. [546 U.S. 04-881 (2005)]. Supreme Court affirms ruling that Social Securiy benefits can be seized to pay back old student loans.

Higher Education Technical Amendments of 1991 - got rid of the 10 year limitation on collecting past due Federal student loans.

The Debt Collection Improvement Act of 1996 - allows the government to offset up to 15% of Social Security benefits to repay defaulted loans.

^they all sound like similar provisions to what we have in English law.

Also, the student loan company and IRS in the UK are better at finding people than the police are, given the number of people who seem to be able to run off here who are wanted in the UK. I always said, you want to find someone quick, get the IRS on the case - they'll get you fast enough

'gets a phone call out of the blue from the Federal Student Loan Program'
Why now? Well, given the protracted length and gargantuan costs of the Iraq debacle they are looking at all means to help pay down the Federal debt: their debt is almost as huge as your friend's is going to be if he doesn't act soon. Allah hum de lala.

The Federal Student Loan people are a--holes to name them.

I served several years in a combat zone which made some of my student loans elegible for forgiveness. But, 4 years of trying to get them to do this and no luck. They won't even answer it. I involved my stateside congressman and they haven't answered him.

Meanwhile I pay the interest on the loans which should be gone.

Anyone out there think they will forgive them?

Only way out of them without paying is ... death. If you signed for the insurance clause that is.

Bj

^That's awful. They induce you into military service on the grounds they'll fogive your student loans and then bang you with a bill.

sorry, but that's a little like the story I heard when the military docked pay because the bloke didn't complete a fall month of work. The reason he didn't was because he was KIA.

My USA student loan debt is $183,000. My payments are about $1000 per month consolidated at 4 percent. Chiropractic college and law school. Painful, but I''m grateful for the education.

Originally Posted by ricklev

My USA student loan debt is $183,000.

When I graduated (quite some time ago...) my debt was $10K and I thought that was a burden.

You can't take knickers of a bare ass! just make sure your money is hidden if you are in debt.

Originally Posted by Sebastien

I know another american living in Thailand who has the same problem. But they didn't reach him yet! He is afraid to go back in the States because he believe they will confiscate his passport. This, I don't know...

Ain't gonna happen!