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[Ron M.]

It's my understanding that if you move overseas, say to a eastern
European country, education loan companies cannot collect from you or
prosecute you for repayment, and the loan will be discharged. My
question is, suppose you moved back to the U.S. 6 months or a year
later, and resumed living and working here? Would they somehow detect
it and resume the collection efforts, or would the debt be permanently
erased?

Ron M.

[Steve Blank]

It doesn't seem logical that the debt would be discharged. Simply
leaving the country does not wipe the slate clean.

The lender might not be able to collect while the defaulter is out of
reach, but certainly can resume when he returns. Seems similar to a
felon skipping to another country without extradition agreements - can't
touch him while he's there but certainly can if he ever returns.

And by the way, prosecution is for criminals. A simple loan defaulter is
not a criminal and is subject only to civil actions like being sued.

Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761

[Ron M.]

I'm wondering how the lender would detect the person's return in the
first place. Would it be automatically "reported" in some way, even a
year or two later, after the debts were long-since written off, or do
the lenders, in some way, constantly scan the IRS records or something
for certain SS numbers showing up? Maybe the credit bureau would be in
the loop in some way, as when the person returned, his or her credit
record would start showing activity again.

Speaking of credit... obviously, the debt would stay on the credit
record connected to that SS number, no matter where they lived.
$100,000 worth of defaulted student loans wouldn't look very pretty..
(-;

Ron M.

[Katatonic]

one problem I see is that a person's passport could be revoked--but I'm not sure if this occurs due to student debt. Do you know if such action is taken? also, when one needs to renew his/her passport, maybe that request could be denied to force the debtor back to the U.S. again, I am just hypthosizing.

I'd be especially interested in your research and happy to share with you in the future.