#student default

[financialaidnetwork-blog]

Questions & Concerns

Please Post any concerns or Questions you may have regarding information in national and international College Admissions and Financial Aid Processing to this Post!!!  We would love to hear from you!!!  

[themoneyweowe]

Student Loans, Social Security and Debts You Carry for Life

Put on your monocle and top hat and pretend you are part of the 1% for a minute. Your first task is to write a set of legal codes about the collection of debt in this country, specifically student And you want to be kind of a jerk about it. What’s the one thing you could do for student debt that you don’t do for any other type of debt, one that would radically shift the relationship between student loan creditors and debtors both practically and symbolically?

How about this, from the Debt Collection Improvement Act of 1996: “Notwithstanding any other provision of law… all payments due to an individual under… the Social Security Act… shall be subject to offset under this section.”

What this means is that when it comes to collecting on student loans, the government can take funds from your Social Security check. There are rules to the offset: the first $750 a month can’t be touched, and only 15 percent of benefits above that can be taken to pay back student loans. But this is still a radical break in the social contract with no equivalent for private debts.

[themoneyweowe]

Obama Relies on Debt Collectors Profiting From Student Loan Woe

The debt collector on the other end of the phone gave Oswaldo Campos an ultimatum: Pay $219 a month toward his more than $20,000 in defaulted student loans, or Pioneer Credit Recovery, a contractor with the U.S. Education Department, would confiscate his pay. Campos, disabled from liver disease, makes about $20,000 a year.

“We’re not playing here,” Campos recalled the collector telling him in December. “You’re dealing with the federal government. You have no other options.”

[themoneyweowe]

Last Chance to Shed School Loans: Proving All Is Hopeless

To discharge student loans in bankruptcy, a borrower may have to convince a judge that life will never get better and destitution is certain.

The terms of bankruptcy for student loans are nearly impossible. 

[themoneyweowe]