Not Paying Government School Loans Back

[4formickey]

right after I paid my loan off, it was taken off of my credit report and now my report looks really,really good

 

[Disney-Kim]

student loans also report to your credit report and can destroy your good credit if they go into default.
they can garnish wages, take tax returns.

you can NOT go to jail for not paying your student loans/debts.

there is NOT a debtors prison in the United States.

 

[Disney-Kim]

Except for bankruptcy which can stay on your credit report for longer then 7 years other bad credit can only stay on your report for up to 7 years from the date of last activity. SO lets say I have student loan that I defaulted on in January of 2000, then repaid them in full on January 2002, they must come off no later then February of 2009. Seven years from the last activity.

according to FCRA laws this is true, but the tricky part is the "date of last activity".....sometimes creditors re-age accounts, though illegal, this will mess up your 7 yr rule.

The loan may drop from your credit, but the government is still going to collect somehow. social security??

 

[Disney-Kim]

They should do whatever they can do to people who don't pay their taxes, including locking them up.

This statement is just scary. I can't believe you think they should lock people up.
I personally have student loans and have had many hard times over the years (yes many years of repayment) making my payments. there are things to help like income sensitive/forbearance. But these payments are big and if something catastrophic happened in my life, I would not be able to pay them. Glad to know that you think I would then belong in jail.

(yes if something catastrophic happened, they would work with me, but its the point)

 

[mainewmn]

actually altought re-aging is a nasty little trick it is not technically illegal. Now like everything alse consumbers beware.

 

[BuckNaked]

actually altought re-aging is a nasty little trick it is not technically illegal. Now like everything alse consumbers beware.

I don't even see it as a nasty little trick. To me, not re-aging the loans gives an easy out to people that just don't want to pay. Don't do anything for 7 years and it drops off the credit report? Sorry, but it should stay there until it is discharged, one way or the other.

 

[cardaway]

This statement is just scary. I can't believe you think they should lock people up...

(yes if something catastrophic happened, they would work with me, but its the point)

Actually since my point included people being able to make contact and make arrangements I don't see a problem but there's nothing like seeing an eye roll before bed.

What's scary to me is the number of people defaulting on these loans and making no effort at all to even make contact to explain themselves. I'm all for giving a break to somebody who had something bad happen as long as they make the effort to make contact.

 

[mickeyfan2]

There is also the problem of people who got good paying jobs, but are not paying back the loans. Many, many years later they get disabled and are now claiming hardship to pay. But the only reason they have a hardship now is for not having paid then. So I don't feel sorry for them. If they graduated, started to make payments and then got permanently disabled I feel the loan should be erased, since they did what was needed and then life threw a curveball.

 

[cardaway]

If they graduated, started to make payments and then got permanently disabled I feel the loan should be erased, since they did what was needed and then life threw a curveball.

Meaning they can't work? If that was the case I would agree, but only if they are disabled beyond the point of not being able to work in any job.

 

[mickeyfan2]

Meaning they can't work?

Yes that is what I meant.

 

[Disney-Kim]

Actually since my point included people being able to make contact and make arrangements I don't see a problem but there's nothing like seeing an eye roll before bed.

What's scary to me is the number of people defaulting on these loans and making no effort at all to even make contact to explain themselves. I'm all for giving a break to somebody who had something bad happen as long as they make the effort to make contact.

I agree that it is scary how many people don't pay their loans/bills/credit cards...etc.
Student loans are scary to me, because had I know the small amount I borrowed would snowball into the huge amt I owe today, I would have never borrowed the money. (but then that means I wouldn't have been able to go to college at all. its a double edged sword.