Student loan default redux
This story appeared in the Monday, October 26th edition of the El Paso Times.
Fifteen percent of students at for-profit colleges in El Paso failed to pay back their federal loans on time — a trend that began before the economy faltered.
Students who borrowed and neglected to pay back thousands of dollars they used to attend for-profit colleges now find themselves tangled in a financial mess that threatens their credit ratings, wages and higher education opportunities.….
Sound somewhat predatory? You’re correct, it is. But wait, there’s more.
…There are different ways the government can collect money if a borrower has defaulted and refuses to pay back the loan. The borrower is warned that the government may take a variety of actions to collect the money.
The most common consequence is the Internal Revenue Service will not refund income tax until the loan is paid in full.…
Please strongly consider the consequences before taking out that loan!
