Arrests for student loan defaults

[E4 No More]

I'm merely saying that the "go to school and live on campus and eat lots of food and have lots of fun and party and drink and maybe accidentally come out with a doctorate in flea breading with a minor in the archaeologic histories of Elvis Presley" mindset might be slightly flawed.

 

I wish trades were higher valued in high school (for the most part, they aren't).

I wish colleges worked better alongside people working a full time job (they are 50/50, could be worse but I do wish they could be better).

I wish student loans were not so easy to get and especially not so easy to get "extra". When I signed up for my small student loans ($2,000 a semester for two semesters), I could have taken out much, much more. I took out what I I needed for the courses. Some students see it as fun money and tell themselves that they will pay it off 50 years from now lets just make now worth it.

I certainly agree with that, but there are also non-party schools that are crazy expensive.

[Dennis1209]

Where there is a will there is a way to earn it. I chose the GI Bill to go to college. 

 

I do have a puzzling question though? A number of years ago before my daughter was to go to college, I did some quick calculations to try and figure out why colleges and universities tuition was astronomical. Won't go into detail but based on rough estimates of the number of students, professors salary, maintenance, utilities, etc. Tax free status and receiving huge amounts of Federal, state aid and grants. They are making a killing financially? Where's all that money going?

Edited February 17, 2016 by Dennis1209

[E4 No More]

 

The ones that get me are the ones that are more than capable of paying but don't for what ever reason:

http://abcnews.go.com/Health/doctor-owes-government-thousands-dollars-unpaid-student-loans/story?id=26376289

 

These are the people that need to have their taxes garnished and summons issued. 

 

Tax returns seized and wages garnished are what they normally do, eventually. You can't bankrupt out and they'll even take your SS payments.

[Dolomite_supafly]

Wait until the debts for ACA become more prevalent. It will eventually be just like mandatory car insurance. Don't have it, get fined but if you don't pay the ACA fine I can guarantee it will someday, hopefully not soon, be a criminal offense.

[GlockSpock]

I certainly agree with that, but there are also non-party schools that are crazy expensive.

 

Well good then! My gripe isn't with smart people who go to school to become smarter and do smart things, but rather the generation that says "Who am I really?" and goes to school for the experience, good times, and if they are lucky enough then a degree in something they thought sounded neat at the time.

 

The system tells them that is a worthwhile thing to do. They get out of school with $75,000 debt and they work at Chili's because they never really figured out who they were and their schooling isn't directly applicable to them or their situation.

 

Let me also add that a smart person going to a crazy expensive non-party school would have likely weighed the costs vs benefits and determined that it is worthwhile to them. Racking up several $100,000 for schooling when you are sure you will earn six figures or better within a few years, that's your choice and chance.

Edited February 17, 2016 by CZ9MM

[Omega]

Where there is a will there is a way to earn it. I chose the GI Bill to go to college. 

 

I do have a puzzling question though? A number of years ago before my daughter was to go to college, I did some quick calculations to try and figure out why colleges and universities tuition was astronomical. Won't go into detail but based on rough estimates of the number of students, professors salary, maintenance, utilities, etc. Tax free status and receiving huge amounts of Federal, state aid and grants. They are making a killing financially? Where's all that money going?

And that is not all, look at the revenue for some of these collegiate sports colleges; that is why some students organizations sued to try and tap into some of that money.   

[monkeylizard]

Try this with a post-graduate degree and see if you can say the same.

 

I can. I didn't borrow a penny for either undergraduate or graduate school, earned my scholarships by studying hard in both high school and college when my friends were out partying, kept a part time job in high school and undergrad, full time jobs in the summers, and waited 7 1/2 years after finishing undergrad before starting my masters to have the cash to pay for it. Yes, my parents were able to help with my undergrad, but that just meant that I was able to go to a private school. Had I not had their help, I would have gone to a state school and still finished debt-free.

Edited February 17, 2016 by monkeylizard

[E4 No More]

I can. I didn't borrow a penny for either undergraduate or graduate school, earned my scholarships by studying hard in both high school and college when my friends were out partying, kept a part time job in undergrad, full time jobs in the summers, and waited 7 1/2 years after finishing undergrad before starting my masters to have the cash to pay for it. Yes, my parents were able to help with my undergrad, but that just meant that I was able to go to a private school. Had I not had their help, I would have gone to a state school and still finished debt-free.

Where do you think scholarship money comes from?

 

It's great that you had parents that helped, but far too many have parents who can't help.

[xsubsailor]

 Question for the legal minds. Would an arrest like this have an impact on your background check when purchasing a gun?

[suspiciousmind]

Oh really?
How old are you?
I'm 25 and have been working at my current job since 2007. I have been here as a full-time employee since 2012.
I have my associates and am only 45 credit hours away from a bachelors. I have $0.00 worth of student debt. My parents didn't help me at all, I didn't get grants but did receive some scholarship money. The rest? I worked it.
I say all that to add that I too am disappointed in how it is "the smart thing to do" to rack up $50,000 to $500,000 in debt for a bachelor's degree. I wish the whole education system could be amended.
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I'm 27. Not all schools are created equal/cost the same. Going to the school that I did awarded me with better networking opportunities and allowed me to study with the BEST of the best in my field, but because of this it was a bit of a pipe dream for paying off those loans short term in my line of work. Should've been an attorney like my twin, but he doesn't get to do half of the cool stuff I do.. :)

Good on you for working hard and being debt free, but not every job or dream is the same.

[suspiciousmind]

Well good then! My gripe isn't with smart people who go to school to become smarter and do smart things, but rather the generation that says "Who am I really?" and goes to school for the experience, good times, and if they are lucky enough then a degree in something they thought sounded neat at the time.
 
The system tells them that is a worthwhile thing to do. They get out of school with $75,000 debt and they work at Chili's because they never really figured out who they were and their schooling isn't directly applicable to them or their situation.
 
Let me also add that a smart person going to a crazy expensive non-party school would have likely weighed the costs vs benefits and determined that it is worthwhile to them. Racking up several $100,000 for schooling when you are sure you will earn six figures or better within a few years, that's your choice and chance.

But, there is nothing wrong with wanting to pursue a career based on dream instead of practicality. Not everyone wants to live to pay bills and then eventually die with nothing more than a great credit score and a boring life to show for it. it may not be boring for them, but to an artistic person it is the equivalent of torture working a 9-5 taking the "safe" route. F that.

I think it is a huge problem to kill dreams and kill creativity just because it might be hard to survive financially. Look at some of the greatest things people have accomplished and the incredible amount of risk it involved...

[monkeylizard]

Where do you think scholarship money comes from?

It doesn't come from student loans, that's for sure. It comes from several places. Some of mine came from companies through their community service efforts. Some of it came from my employer (which I wouldn't have had if I wasn't, you know, working).  Some of it came from the school I attended which gets it from income it makes on investments on endowment funds. Endowments are funded by people like me who give back to the school after we graduate to pay-it-forward and help others the way someone came before me and helped me. I didn't get that scholarship money because of my last name. I got it because I earned it through hard work studying, reading, writing papers, and applying myself.

 

It's great that you had parents that helped, but far too many have parents who can't help.

I know. That's why I said I would have gone to a state school if I hadn't had that help. It would have been a different experience, but the end result of a degree and no debt would have been the same.

[suspiciousmind]

Not trying to say that anyone's life path is flawed or wrong, but this issue just isn't as cut and dry as we want it to be.

[Sam1]

Easy solution for lack of money and desire to go to college. Join the military.

[E4 No More]

It doesn't come from student loans, that's for sure. It comes from several places. Some of mine came from companies through their community service efforts. Some of it came from my employer (which I wouldn't have had if I wasn't, you know, working).  Some of it came from the school I attended which gets it from income it makes on investments on endowment funds. Endowments are funded by people like me who give back to the school after we graduate to pay-it-forward and help others the way someone came before me and helped me. I didn't get that scholarship money because of my last name. I got it because I earned it through hard work studying, reading, writing papers, and applying myself.

 

 

 

I know. That's why I said I would have gone to a state school if I hadn't had that help. It would have been a different experience, but the end result of a degree and no debt would have been the same.

I wasn't denigrating your accomplishments either, Monkey. Some on here are making the point of not paying back other people's money for their education. The point I was making is that scholarships, grants, etc, are in fact not paying back other people's money with the obvious difference being that you aren't expected to pay it back. Public schools are paid by public funds too.

 

This topic is really a can of worms, but student loans, (until the government took it over), were being made by copious amounts of lenders despite the default rate because they were government backed. Higher education has created one heck of a mess that can't be easily remedied.

[Mike.357]

I'm not going to lie this scares me greatly cause my loans are in default and have been for a long time and I'm still trying to get a better payment deal with the debt collector and this makes me think I need a lawyer or something!


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if the loan has been turned over to a collector the .gov is not interested in your problems any longer. They don't own it.

[MacGyver]

Student loan debt is one area of our economy that is positively unsustainable.  Something is going to change because there's not another option.  It has to.

[Caster]

Someone explain the difference between a loan default and theft. If you agree to pay a certain and amount and attach a signature to a legal document then you are obliged to pay that money. If you don't, you are stealing it from the entity from which you borrowed it.

Defaulting or refusing to pay back a contractual loan is theft. If you stole that money by any other means, you'd go to jail.

[ironsniper1]

if the loan has been turned over to a collector the .gov is not interested in your problems any longer. They don't own it.

my private loans as far as I know is gone but I still have federal loans


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[monkeylizard]

Student loan debt is one area of our economy that is positively unsustainable.  Something is going to change because there's not another option.  It has to.

 

This. If/when it goes south it's going to make the mortgage crisis look like minor dip.

[AtomicRooster]

I owe the IRS just north of 26k. Should I hide my wife and dog?......well dog anyway.:)

[Ugly]

If the debt is turned over to civilians and federal marshalls are going to collect, where does this stop? Will all unpaid bills wind up being collected in the same manner?
Just seems logical. I don't condone not paying your debts but do think this is ridiculous.

I got a parking ticket on my "unattended" landscape trailer in PA when I was visiting, didn't realize it because the rain turned into pulp by the time I picked it up a week later. It turned into a warrant for my arrest over $12. By the time I got it resolved it cost me $150. Shades of tactics in ferguson? I think so.

[Dolomite_supafly]

I think intent should be the criteria. If you had no intention to pay when you took it out it is fraud. If you intended to pay it back but cannot, for ANY reason, then it is a civil matter. Attach their wages, income tax or put a lien on their property but we cannot allow people to get arrested for violating a civil contract that breaks no criminal laws.

If this stands then what is keeping me from calling the cops if I loan someone $10 and they never repay. Only difference is the amounts.

No way someone should be a criminal for violating a civil contract. How about if you miss a payment on your house, car or cable bill? Does that mean those companies can have you arrested? I don't think so. IMHO it is no different than not paying on a student loan.

Judges and LE are getting WAY out of hand. We had a judge issue an order to arrest someone because the "criminal" decided not to do their job. They broke no criminal laws but were still thrown in jail.

Be careful what we wish for because when people start getting arrested for civil matters it means it is just a matter of time before people start getting arrested for other civil matters.

Say someone doesn't do work to your satisfaction and you refuse to pay. Do they have a right to have you arrested for refusing to pay according to the contract? Or do you have the right to have them arrested for not abiding by the contract?

This is a very, very slippery slope and imagine the abuse by those in power.

[E4 No More]

Weren't they arrested for failure to appear on a summons, anyway?

[FUJIMO]

Weren't they arrested for failure to appear on a summons, anyway?

THIS is what they reported on last night's news. Not arrested on the debt but the failure to appear. Who knows , he might have gotten a bleeding heart that dropped everything against him but his worthless azz was too big a hairy kitty to even show up.