As the U.S. Department of Education will resume collecting on defaulted student loans, borrowers may face wage garnishment and see credit scores decline.
Wage garnishing is a very useful tool for a government captured by cruel interests. Since it’s been decided student loan debt can never be forgiven, this is the only way to collect on that during the loaner’s lifetime. Basic food and housing be damned.
That will discourage people from working in the formal economy and encourage them to work in the informal economy. Another added bonus is no income tax on under the table jobs…
Okay but I remember reading something about them sending loan debt to collections… I’m not sure if that ever actually happened… But if they did… Then wouldn’t that mean you could get it wiped away?
If the debt is bought by a private company who does debt collections, they absolutely will stop coming for it. You just have to be able to evade them long enough and eventually it gets written off.
The thing with student loans is that the gov will hold your loan and just garnish wages till you die or pay them back + interest. Death will probably come first.
The collections they speak of are usually protected in some manner. Approved lenders by the government. Believe they can only be discharged in bankruptcy if you can prove unique situations, which if it’s happening to millions of people, I imagine a judge would find it hard to call unique.
Wage garnishing is a very useful tool for a government captured by cruel interests. Since it’s been decided student loan debt can never be forgiven, this is the only way to collect on that during the loaner’s lifetime. Basic food and housing be damned.
Can’t garnish peoples wages if they’re unemployed in a collapsed economy
That will discourage people from working in the formal economy and encourage them to work in the informal economy. Another added bonus is no income tax on under the table jobs…
Okay but I remember reading something about them sending loan debt to collections… I’m not sure if that ever actually happened… But if they did… Then wouldn’t that mean you could get it wiped away?
Collections will never stop harassing these people, which actually is the point of this maneuver. Harassing those who are financially disadvantaged.
If the debt is bought by a private company who does debt collections, they absolutely will stop coming for it. You just have to be able to evade them long enough and eventually it gets written off.
The thing with student loans is that the gov will hold your loan and just garnish wages till you die or pay them back + interest. Death will probably come first.
The collections they speak of are usually protected in some manner. Approved lenders by the government. Believe they can only be discharged in bankruptcy if you can prove unique situations, which if it’s happening to millions of people, I imagine a judge would find it hard to call unique.