Government Pursues Unpaid Student Loans
Posted 19 Feb, 2009
Further proof that student loans can haunt your child long after their education has ended: this month the United States government has filed suit against numerous student loan holders who have yet to pay their debts, including some who took out their loans in the 1980’s (before some of our children were even born!).
Claiming Unpaid Debts
With the country struggling financially and the current national debt at over $10,000,000,000,000 (yikes!) it’s not surprising that the government would choose this year to try to reclaim the federal funds offered as student loans. The U.S. Department of Justice has reportedly hired private lawyers to pursue legal action against loan debtors.
What This Means to Your Family
Though your family is most likely unaffected by these recent lawsuits, they do illustrate the serious effect loans can have on a student’s lifestyle. One of the recently filed suits sites a debtor who owes thousands of dollars in interest alone-a frightening proposition in today’s economy.
Student debt is an increasingly serious problem in our country. In fact, in November I discussed how student loan borrowing is beginning to outdo postgraduate income! Additionally, surveys in recent years have shown that many students are delaying important life decisions-from pursuing a dream career to choosing when to get married and start a family.
With this in mind I encourage you, as always, to plan ahead! It is important that you combine various resources for funding college, and, if you do end up borrowing, that you do careful research and enter those credit obligations with your eyes wide open.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
photo: Cancia’s Emergency Exit 2
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Further proof that student loans can haunt your child long after their education has ended: this month the United States government has filed suit against numerous student loan holders who have yet to pay their debts, including some who took out their loans in the 1980’s (before some of our children were even born!).
Claiming Unpaid Debts
With the country struggling financially and the current national debt at over $10,000,000,000,000 (yikes!) it’s not surprising that the government would choose this year to try to reclaim the federal funds offered as student loans. The U.S. Department of Justice has reportedly hired private lawyers to pursue legal action against loan debtors.
What This Means to Your Family
Though your family is most likely unaffected by these recent lawsuits, they do illustrate the serious effect loans can have on a student’s lifestyle. One of the recently filed suits sites a debtor who owes thousands of dollars in interest alone-a frightening proposition in today’s economy.
Student debt is an increasingly serious problem in our country. In fact, in November I discussed how student loan borrowing is beginning to outdo postgraduate income! Additionally, surveys in recent years have shown that many students are delaying important life decisions-from pursuing a dream career to choosing when to get married and start a family.
With this in mind I encourage you, as always, to plan ahead! It is important that you combine various resources for funding college, and, if you do end up borrowing, that you do careful research and enter those credit obligations with your eyes wide open.
All the best,
Deborah Fox
Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.
photo: Cancia’s Emergency Exit 2
Subscribe in a reader
Subscribe by Email
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