OT: Yet another reason to never take out a student loan – They will hunt you down!

[paramount]

Just say no to student loans.
Just say no to student loans.
Just say no to student loans.

[bearishgurl]

I saw the video. Private SL lenders are contracting with the US Marshal’s service in Houston in attempt to collect up to 1400 accounts of ~30 year-old student loan debt.

Obviously, these debtors knew they still owed some money … even if a small amount (which has mushroomed over the years due to interest) and never sought to look into it and make good on it to get it off their records.

I don’t understand why these debtors weren’t sued after they defaulted long ago. I’m pretty sure private SL lenders are allowed to sue for collection of these loans.

Why try to force them into a payment plan NOW (at the threat of jail) when they have had 3 decades to locate these debtors and take collection actions?

Apparently, the statute of limitations never expires on outstanding student loan debt. That’s not surprising to me. No one in my family (immediate or otherwise) has ever taken one out and it is extremely likely that no one ever will.

It is better NOT to go to college (or go to a much cheaper college or nearly “free” ROP job training program) than to take out a student loan which will ruin your life right out of the gate, just as you’re trying to start it. I don’t believe in them.

[no_such_reality]

I suspect there’s some provision that makes the debtor responsible for the cost of collection. Obviously the business isn’t paying for seven armed marshals tongonout an arrest at the true cost of service for $ 1500 loan.

That or the loans were sold off with Marshall collection services included.

[bobby]

[quote=bearishgurl]

It is better NOT to go to college (or go to a much cheaper college or nearly “free” ROP job training program) than to take out a student loan which will ruin your life right out of the gate, just as you’re trying to start it. I don’t believe in them.[/quote]

Disagree with this sentiment. Whether or not to take on student debt depends on one’s financial situation and direction in life.
if one is smart about this decision, like many other financial decisions, it can be quite beneficial.

[paramount]

[quote=bearishgurl]

It is better NOT to go to college (or go to a much cheaper college or nearly “free” ROP job training program) than to take out a student loan which will ruin your life right out of the gate, just as you’re trying to start it. I don’t believe in them.[/quote]

I generally agree unless were talking Harvard, MIT, Princeton, etc…

I wonder how many of these people arrested for not paying their student loans went to football schools or for-profit schools.

[bearishgurl]

[quote=paramount][quote=bearishgurl]

It is better NOT to go to college (or go to a much cheaper college or nearly “free” ROP job training program) than to take out a student loan which will ruin your life right out of the gate, just as you’re trying to start it. I don’t believe in them.[/quote]

I generally agree unless were talking Harvard, MIT, Princeton, etc…

I wonder how many of these people arrested for not paying their student loans went to football schools or for-profit schools.[/quote]In spite of several tuition fee hikes in the past decade (but not in recent years), I feel the CSU is still reasonable in cost for an in-state student. If your student can carry a 12-23 hr week job while attending FT, they can pay some of their expenses (incl gas, parking and some books, if necessary). It isn’t that costly for room/board if your student shares with 3 roommates as they will only owe 1/4 the rent and utilities every month. And some of the CSU campuses are located in cheaper inland and/or rural areas of the state where housing costs less.

I think the CSU is a good value and has an incredible amount of degree programs to choose from in comparison to similarly-situated state college systems in other states. It’s undoubtedly the biggest public university system in the nation and cranks out more bachelor degrees than any other. And your student doesn’t have to have a 4.0+ GPA in HS to get accepted to most campuses … although that bar keeps rising every year.

[mixxalot]

Agree in fact it took me forever to pay off my 20K student loan after graduation since the job market sucked and pay was bad at the time. One reason why I have not pursued an advanced degree like an MBA or JD is the cost. The jobs are either not there or do not pay enough to justify the cost of an advanced degree. My BA degree has not opened doors.

[bearishgurl]

[quote=mixxalot] . . . My BA degree has not opened doors.[/quote]If you don’t mind my asking, mixxalot, what did you major in?

[scaredyclassic]

The arrest wasn’t for the failure to pay. I think it was off a warrant post judgment for a debtors examination he failed to appear for…

He probably got used to blowing off notices. Some u can some u can’t…

[bearishgurl]

[quote=scaredyclassic]The arrest wasn’t for the failure to pay. I think it was off a warrant post judgment for a debtors examination he failed to appear for…

He probably got used to blowing off notices. Some u can some u can’t…[/quote]Thanks for your insight, scaredy. This story (sensationalized by the local news) didn’t sound right to me, either. Seems as if a boatload of private (delinquent) student loans in that region were turned over to Sallie Mae, who paid the lending banks the guarantee on them and is now attempting to collect as much as possible from these delinquent borrowers. And there will always be their SS payments to garnish if they haven’t yet begun to do so.

…Sallie Mae previously originated federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP).[3] and worked as a servicer and collector of federal student loans on behalf of the Department of Education. ..

https://en.wikipedia.org/wiki/Sallie_Mae

Of course, with the above experience and due to the age of these loans, Sallie Mae has the blessing (and likely, the resources) of the Federal Government available to them such as the US Marshal’s Office, lol ….

Yes, a LOT of people just “blow off” collection notices, thinking that they’ll just eventually “go away.” Especially old student loans and old medical bills. Alas, nothing could be further from the truth :-0

[EconProf]

If you look today at the YouTube video, you can see an update among the choices of related videos to the right. It shows a lot of new info that makes one a lot less sympathetic to the “victim”.
The $1500 loan from 29 years ago is undoubtedly well over $10,000 now, including penalties and interest charges. And the guy undoubtedly had regular notices during those 29 years which he ignored. He is blowing off the money that we taxpayers loaned him and he presumably earned more in the last 29 years as a result. He now appears to live in a nice house. Time to pay.

[Author]

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