-Doing right - harder than it sounds o_o?-
There is no forgiveness there is no statute of limitations on time. There are automatic fees and penalties that make it probable to multiply the amount owed and the payment schedules can easily exceed $1000 dollars a month should you miss payments. And rest assured the DOE/DOJ/IRS will collect if the private collection agencies fail to extort the full loan amount plus penalties from the mark - err- I mean student.
There are nearly no bankruptcy protections for student loans. The Department of Education DOE collects on almost 100% of loans. The government gets back $122 for every $100 loaned. This is in addition to what the collection agencies skim off the top. The Department of Education makes more money if you default. Education wants you to default because it is a quicker payday for the Federal Government when they sell the collection contract for the full amount of the loan plus initial penalty and/or interest. Because their are no consumer protections or statutes of limitations the loans will be collected even if your social security payments have to be garnished. The laws are such that the so called loan amelioration/default programs lead ultimately to the IRS as the ultimate collector. Should forgiveness of the inflated loans take place - the inflated amount forgiven (The amount owed will be inflated with fees and penalties which can number in the $10,000's to the $350,000 range) is counted as income. Enter the loving kind and reasonable Internal Revenue Service with powers to take and liquidate property and garnish income.
This is not a joke. People who have defaulted on their loans in their youth and then gone on with their lives have had their property seized and their Social Security payments garnished.
http://www.forbes.com/sites/peterjreilly/2012/03/19/why-college-prices-keep-rising/
There is no forgiveness there is no statute of limitations on time. There are automatic fees and penalties that make it probable to multiply the amount owed and the payment schedules can easily exceed $1000 dollars a month should you miss payments. And rest assured the DOE/DOJ/IRS will collect if the private collection agencies fail to extort the full loan amount plus penalties from the mark - err- I mean student.
There are nearly no bankruptcy protections for student loans. The Department of Education DOE collects on almost 100% of loans. The government gets back $122 for every $100 loaned. This is in addition to what the collection agencies skim off the top. The Department of Education makes more money if you default. Education wants you to default because it is a quicker payday for the Federal Government when they sell the collection contract for the full amount of the loan plus initial penalty and/or interest. Because their are no consumer protections or statutes of limitations the loans will be collected even if your social security payments have to be garnished. The laws are such that the so called loan amelioration/default programs lead ultimately to the IRS as the ultimate collector. Should forgiveness of the inflated loans take place - the inflated amount forgiven (The amount owed will be inflated with fees and penalties which can number in the $10,000's to the $350,000 range) is counted as income. Enter the loving kind and reasonable Internal Revenue Service with powers to take and liquidate property and garnish income.
This is not a joke. People who have defaulted on their loans in their youth and then gone on with their lives have had their property seized and their Social Security payments garnished.
http://www.forbes.com/sites/peterjreilly/2012/03/19/why-college-prices-keep-rising/
No comments:
Post a Comment
Comment: