Vocaboly.com

[Chaz]

A FEW QUESTIONS ABOUT DEFAULTS:

If someone defaults on a student loan, what is likely to happen to them?


If they live off the books without a regular job, how can the gov't find
them?


How interested is the gov't in finding someone who'd defaulted? Are people
prosecuted or just made to repay.


Is there a whistleblower fee for informing the gov't of the whereabouts of a
individuals who have defaulted?

[Steve Blank]

Chaz wrote:

[Joe Chromy, Jr]

Hello Chaz... please see my answers within your post... do you have any
specific questions???

On Sun, 25 Jan 2004 15:40:29 GMT, "Chaz" <nospam@nospam.net> wrote:

:|>A FEW QUESTIONS ABOUT DEFAULTS:
>
>If someone defaults on a student loan, what is likely to happen to them?

This person will probably end up paying for the loan sooner or later. A statute
of limitation for enforcing the repayment of the debt does not exist.

:|>If they live off the books without a regular job, how can the gov't find
>them?

There are various ways to locate people without searching government databases.
In fact, these alternate sources are often more reliable than the government
databases. To live totally off the books, you will not be able to own any real
or personal property by purchasing these goods with a loan or credit card...
Your information will surface and you will be found - eventually.

:|>How interested is the gov't in finding someone who'd defaulted? Are people
>prosecuted or just made to repay.

The government is very interested in finding someone who defaults on their
obligation to the American Taxpayer. The Department of Education has converted
and collected over $1 billion in defaulted student loan obligations...

Debtors are not prosecuted - they can be sued to force repayment of the debt
obligation. However, the likelihood is a bit low because of administrative wage
garnishment as well as other repayment options available to the government and
the borrower..

:|>Is there a whistleblower fee for informing the gov't of the whereabouts of a
>individuals who have defaulted?

No - In fact, every dollar that is collected, the tax payer is reimbursed for
paying the guaranty on the loan. So, the more money the Government collects
the more revenue is generated. So - in the bigger picture - you are getting
money back through the repayment of the guaranty payments made to the lender by
the taxpayer.


Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[Joe Chromy, Jr]

Thanks Steve - but I just want to clarify your post - if I may

The lender will not actually act on the default directly against a defaulted
borrower. The guaranty agency, Departments of Education and Justice and the
university (depending on the loan type) have the ability to do all of the things
you state below.

On Sun, 25 Jan 2004 16:32:36 GMT, Steve Blank <steve@randallblank.com> wrote:

:|>> How interested is the gov't in finding someone who'd defaulted? Are people
>> prosecuted or just made to repay.
>
>Owing a debt is not a criminal offense so prosecution is not a concern.
>But the lender can put garnishments on your pay, liens on your home, and
>even attach your tax refunds.

Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[Joe Chromy, Jr]

Hello Chaz... please see my answers within your post... do you have any
specific questions???

On Sun, 25 Jan 2004 15:40:29 GMT, "Chaz" <nospam@nospam.net> wrote:

:|>A FEW QUESTIONS ABOUT DEFAULTS:
>
>If someone defaults on a student loan, what is likely to happen to them?

This person will probably end up paying for the loan sooner or later. A statute
of limitation for enforcing the repayment of the debt does not exist.

:|>If they live off the books without a regular job, how can the gov't find
>them?

There are various ways to locate people without searching government databases.
In fact, these alternate sources are often more reliable than the government
databases. To live totally off the books, you will not be able to own any real
or personal property by purchasing these goods with a loan or credit card...
Your information will surface and you will be found - eventually.

:|>How interested is the gov't in finding someone who'd defaulted? Are people
>prosecuted or just made to repay.

The government is very interested in finding someone who defaults on their
obligation to the American Taxpayer. The Department of Education has converted
and collected over $1 billion in defaulted student loan obligations...

Debtors are not prosecuted - they can be sued to force repayment of the debt
obligation. However, the likelihood is a bit low because of administrative wage
garnishment as well as other repayment options available to the government and
the borrower..

:|>Is there a whistleblower fee for informing the gov't of the whereabouts of a
>individuals who have defaulted?

No - In fact, every dollar that is collected, the tax payer is reimbursed for
paying the guaranty on the loan. So, the more money the Government collects
the more revenue is generated. So - in the bigger picture - you are getting
money back through the repayment of the guaranty payments made to the lender by
the taxpayer.


Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[Joe Chromy, Jr]

Hello Chaz... please see my answers within your post... do you have any
specific questions???

On Sun, 25 Jan 2004 15:40:29 GMT, "Chaz" <nospam@nospam.net> wrote:

:|>A FEW QUESTIONS ABOUT DEFAULTS:
>
>If someone defaults on a student loan, what is likely to happen to them?

This person will probably end up paying for the loan sooner or later. A statute
of limitation for enforcing the repayment of the debt does not exist.

:|>If they live off the books without a regular job, how can the gov't find
>them?

There are various ways to locate people without searching government databases.
In fact, these alternate sources are often more reliable than the government
databases. To live totally off the books, you will not be able to own any real
or personal property by purchasing these goods with a loan or credit card...
Your information will surface and you will be found - eventually.

:|>How interested is the gov't in finding someone who'd defaulted? Are people
>prosecuted or just made to repay.

The government is very interested in finding someone who defaults on their
obligation to the American Taxpayer. The Department of Education has converted
and collected over $1 billion in defaulted student loan obligations...

Debtors are not prosecuted - they can be sued to force repayment of the debt
obligation. However, the likelihood is a bit low because of administrative wage
garnishment as well as other repayment options available to the government and
the borrower..

:|>Is there a whistleblower fee for informing the gov't of the whereabouts of a
>individuals who have defaulted?

No - In fact, every dollar that is collected, the tax payer is reimbursed for
paying the guaranty on the loan. So, the more money the Government collects
the more revenue is generated. So - in the bigger picture - you are getting
money back through the repayment of the guaranty payments made to the lender by
the taxpayer.


Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[Joe Chromy, Jr]

Hello Chaz... please see my answers within your post... do you have any
specific questions???

On Sun, 25 Jan 2004 15:40:29 GMT, "Chaz" <nospam@nospam.net> wrote:

:|>A FEW QUESTIONS ABOUT DEFAULTS:
>
>If someone defaults on a student loan, what is likely to happen to them?

This person will probably end up paying for the loan sooner or later. A statute
of limitation for enforcing the repayment of the debt does not exist.

:|>If they live off the books without a regular job, how can the gov't find
>them?

There are various ways to locate people without searching government databases.
In fact, these alternate sources are often more reliable than the government
databases. To live totally off the books, you will not be able to own any real
or personal property by purchasing these goods with a loan or credit card...
Your information will surface and you will be found - eventually.

:|>How interested is the gov't in finding someone who'd defaulted? Are people
>prosecuted or just made to repay.

The government is very interested in finding someone who defaults on their
obligation to the American Taxpayer. The Department of Education has converted
and collected over $1 billion in defaulted student loan obligations...

Debtors are not prosecuted - they can be sued to force repayment of the debt
obligation. However, the likelihood is a bit low because of administrative wage
garnishment as well as other repayment options available to the government and
the borrower..

:|>Is there a whistleblower fee for informing the gov't of the whereabouts of a
>individuals who have defaulted?

No - In fact, every dollar that is collected, the tax payer is reimbursed for
paying the guaranty on the loan. So, the more money the Government collects
the more revenue is generated. So - in the bigger picture - you are getting
money back through the repayment of the guaranty payments made to the lender by
the taxpayer.


Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC

[Joe Chromy, Jr]

Thanks Steve - but I just want to clarify your post - if I may

The lender will not actually act on the default directly against a defaulted
borrower. The guaranty agency, Departments of Education and Justice and the
university (depending on the loan type) have the ability to do all of the things
you state below.

On Sun, 25 Jan 2004 16:32:36 GMT, Steve Blank <steve@randallblank.com> wrote:

:|>> How interested is the gov't in finding someone who'd defaulted? Are people
>> prosecuted or just made to repay.
>
>Owing a debt is not a criminal offense so prosecution is not a concern.
>But the lender can put garnishments on your pay, liens on your home, and
>even attach your tax refunds.

Bravejoe

"That's my opinion. I could be wrong." Dennis Miller
"It Doesn't Matter!" Bravejoe

remove the "t1","us" and replace "com" with "net" from my email address to reply privately.

"There's fodder for the cannons and the guilty ones can all sleep safely." Andy Partridge XTC