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Originally posted by traderonwallst
reply to post by dawnstar
Seriously......not going to college is only going to hurt him in the long run. Our welfare rolls are full of people that did not go to college, not all by their choice, but I have never heard of anyone on welfare being a college graduate.
Student loan fugitives
When faced with unaffordable monthly payments and relentless creditors, some see leaving the country as their only way out.
NEW YORK (CNN) -- Carl, a Florida native now living overseas, is afraid to move back to the United States. That's because he can't afford to pay his student loans.
Carl (who doesn't want his last name used) stopped making his $450 monthly payments after his family incurred some unexpected medical expenses, and his $55,000 private loans went into default. That's when the phone calls from debt collectors started, and Carl decided not to come back.
"It was made clear that if I ever came home, I'm screwed," says Carl.
Today, he estimates his private loans are more than $70,000. Though he hopes to move home one day, for now, staying abroad is the only option he can see.
"If it means I have to live in exile from friends and family...well, that's the breaks. So be it. But I won't put my family in a situation where they are afraid," he says.
While most Americans are burdened with debt of some kind, student loan repayment can be a particularly scary prospect for young people struggling to start a career. Payments are often higher than expected, and the loans can't easily be discharged. Added pressure from debt collectors causes some grads to flee their loans by fleeing the country.
"These are people new to borrowing and they didn't understand what they were getting into," says Mark Kantrowitz of Finaid.org, an online student loan information Web site. "It's a very sorry situation that it comes to students feeling they have no option than to leave the country," he says. "It's a sign the system is broken."
To date, there is about $60 billion in defaulted student loan debt according to Chris Lang of the New York-based debt collection agency, ConServe. But while skipping town to avoid paying student loans isn't very common - Lang estimates that only about 2% to 4% of delinquent student loan debt is owed from students abroad - for some, it seems like the only way out.
International addresses make it more difficult to find people, and collection companies would usually need to hire an international counsel or a third party collector to recoup the debt, cutting into their profits and reducing their incentive to go after a debtor.
"It increases our expenses to go overseas," says Justin Berg of American Profit Recovery, a debt collection agency in Massachusetts. "Our revenues are cut by more than half," he says.