Pay Those Student Loans or Else....

[derrickdj1]

HOUSTON (FOX 26) - Believe it or not, the US Marshals Service in Houston is arresting people for not paying their outstanding federal student loans.

Paul Aker says he was arrested at his home last week for a $1500 federal student loan he received in 1987. http://www.fox26houston.com/news/local-news/92232732-story:%C2'> view clip for better info.

 

Pay up folks!!!  You know who you are, lol.

[Bella]

I saw this article yesterday. Debtors prisons are making a comeback.

Edited February 17, 2016 by Bella

[CECAA850]

29 years seems a sufficient amount of time to pay off a $1500 loan.  Maybe wage garnishment would be more appropriate? 

[Bella]

Perhaps. But if I recall he claimed he didn't even know the loan was still outstanding. Arrest him first and sort out the facts later I suppose. If you fail to pay a debt to a creditor they can sue you and win a judgment, but only after trial. If you fail to pay a debt to the government it appears they can imprison you before trial.

While I would advise avoiding any debt as much as possible. I would warn against any debt to your 'representative' government.

Edited February 17, 2016 by Bella

[The History Kid]

Not so sure about arrest - but private student loaners are bastards anyway. I've had to lawyer up several times now because my "group" keeps wanting to gang up on me every time there's a school break and collect money from me. They even sent me to collections last time, demanding I pay $1,250 right away.

[Paducah Home Theater]

29 years seems a sufficient amount of time to pay off a $1500 loan.  Maybe wage garnishment would be more appropriate? 

 

Gotta go to court to set that up.  It seems that the student loan debt collectors are filing in federal court which uses the US Marshals to serve warrants or whatever.  What I don't understand is why the arrest and not just serving them papers.  

[Bella]

That's the problem with student loans. They are the only type of loan that is not dischargeable. A gift of sorts to the banks from a famous president who now has a spouse running for his old job.

[derrickdj1]

The student loan people are better at finding you than the FBI, CIA.  They located Osama bin Laden for the navy seal team, no joke, lol.

[mike stehr]

They probably spent $5000 to serve the warrant.

[Jim Naseum]

They probably spent $5000 to serve the warrant.

 

Ahh, but THAT 5 grand is on the public! They'll still get their pound of flesh.

[Bella]

So is the cost of incarceration.

[deep3shot]

The arrest was likely for failure to appear in court to answer for nonpayment.  Not paying a loan is not a criminal offense.

[BigStewMan]

what a shameful place we often live in.   I'm of the belief that jail should ONLY be for violent offenders.  Surely we're smart enough to think of other ways to punish non-violent offenders. Pick up litter for minimum wage until you've paid off your debt; or in Bernie Madoff's case, the rest of your life plus 83 years.

[Bella]

The arrest was likely for failure to appear in court to answer for nonpayment.  Not paying a loan is not a criminal offense.

I think failure to appear in such a case would result in a default. Allowing the plaintiff recourse to seek a garnishment. Not the issuance of an arrest warrant. But it isn't our parents' America anymore.

[T2K]

I've got an idea. How about just paying back your 'loans'?

 

Keith

[derrickdj1]

The Federal Marshalls sent him a bill for the arrest of $1,200-1,300.

[CECAA850]

I've got an idea. How about just paying back your 'loans'?

 

Keith

 

That's un-American.

[Jim Naseum]

I've got an idea. How about just paying back your 'loans'?

 

Keith

 

I don't think anyone is suggesting otherwise. I think, by carefully reading the actual thread, people are suggesting the penalty and process for not paying is mismatched for the crime.

[RRR]

Glad my student loans have been paid off for some time.

 

$8000 for the year, wonder how much it would cost these days ?

[oldtimer]

That's the problem with student loans. They are the only type of loan that is not dischargeable. A gift of sorts to the banks from a famous president who now has a spouse running for his old job.

As I recall the final straw was by the guy with a brother running for office.

 

Before 1976, all education loans were dischargeable in bankruptcy. That year, the bankruptcy code was altered so loans made by the government or a non-profit college or university could not be discharged during the first five years of repayment. They could, however, be discharged if they had been in repayment for five years or if the borrower experienced “undue hardship.” Then, the Bankruptcy Amendments and Federal Judgeship Act of 1984 made it so all private student loans were excepted from discharge too.

Two decades of further tweaks to the bankruptcy code ensued until 2005, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which made it so that no student loan — federal or private — could be discharged in bankruptcy unless the borrower can prove repaying the loan would cause “undue hardship,” a condition that is incredibly difficult to demonstrate unless the person has a severe disability. That essentially lumps student loan debt in with child support and criminal fines — other types of debt that can’t be discharged.