There are $1.2 trillion (that’s with a ‘t’) of student loans out there and growing at $3,000 per second! Read this in a reputable book, don’t ask me for pin cite.
A student borrower is in default if you fail to make a payment for 9 months. What happens if he changes his mind on what he wants to do for a career. Does he have to get another loan? If so, would he not just be stuck with his current career then? Have a look at this site, it provides a great service. The ability to look at your attributes, likes and dislikes, and find a possible career to purse. Everyone should use this tool. Not just to pick a career either, this site will help you get started and pointed in the right direction to pursue the career you’ve chosen as well.
So, what can are 5 main things the Dept. of Education can do?
1. Keep your tax refund next year.
2. Garnish your paycheck without obtaining a court judgment (that’s remarkable!).
3. Take your federal benefits away (i.e. social security / disability).
4. Ask the state to revoke your professional license.
5. Sue you and collect by taking money out of your bank account and placing a lien against your real estate.