Dick Adams wrote:

- quote -

Yer right, 'e's wrong. See
http://www.edfund.org/students/stude.../payments.html

"Section 682.410(b)(10)(A-O) of the Code of Federal
Regulations authorizes guaranty agencies to garnish the
wages of defaulted student loan borrowers."

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Dick Adams wrote:

- quote -

You were correct. Without actually knowing who issued and
guaranteed the loans and what state the person is in, it is
impossible to provide a complete answer. That said, the
borrower could be subject to wage garnishment up to 15% of
disposable income; federal and state income tax refund
offsets; loan assigned to a collection agency and a lawsuit
brought to obtain payment; loss of credit rating and
subsequent impact; unable to obtain federal and state
employment; college may withhold transcripts; etc., etc.

--
Alan
http://taxtopics.net

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Dick Adams wrote:

- quote -

As always, you were correct, although, until recently,
seizure of tax refunds was the only collection method used
to any extent. As described in this site, more aggressive
collection techniques are currently in use.

I recall stories of six figure income doctors and lawyers,
among others, stiffing the lenders at no consequence.

http://www.nymc.edu/studentlife/loandef.htm

Bill

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Dick Adams <rdadams[at]smart.net> wrote:

- quote -

Generally student loans are guaranteed by the government,
not made by them. I suppose it's possible that if he
defaulted the government bought the loans from the bank.

As any lender, they can seize not only tax refunds but wages
and other property, but they'll have to sue him and get a
judgment first.

Stu

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"Dick Adams" <rdadams[at]smart.net> wrote:

- quote -

I believe you are correct. I belive he will find out
shortly that much more than that can and will be done.

Wayne Brasch

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The other day someone told me that all his student loans
were issued by the Federal government and were in default.
He was of the opinion that all the Feds could do was grab
his tax refunds, i.e., no garnishment. My response was that
if he paid for that advice, he'd been cheated. <g
Was I correct?

Dick

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