Students Escape Loans Overseas

The new wave of causalities in America to suffer from the Global Meltdown, Americans students the future of the nation leaving the nation to avoid a life time of hardship at the expenses of lenders in their own nation.

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.
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"It was made clear that if I ever came home, I'm screwed," says Carl.
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"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.

This is not a joke this reality and an ugly one at that.

When higher education becomes unfordable the only option for those that wants to become something better in life is to deep themselves on the so call "students loans" to achieve that educating, putting themselves in a life time of debt even before they get to hit the work force that is now at an all time low.

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.

money.cnn.com...

www.economyincrisis.org...

The future of America will now be hidden like criminals oversea.

I don't think students will be the only ones trying to escape overseas soon. Things are going to get pretty rough and people will be looking for greener pastures wherever they can find them.

reply to post by Karlhungis


Interesting, you may be right, it will be many that if they can afford to flee the nation to avoid their bills they will.

My daughter was caught in the student loan also, but we helped her with the expenses so her debt is now under 10,000 dollars, but that doesn't count the credit card debt tha she also have from her student years.

In order to avoid the incredible high interest she took another loan to pay for the her highest interest credit card, even when she asked over and over the bank of America to lower her interest rates, they didn't even care.

As long as she can keep her job she will pay for some of her bills (we still pay for the rest) and be able to pretend that she has a life of Independence, ( she's planing to move back home in two months) so she can pay her student loan faster.

What a future of our children this days.

reply to post by marg6043


Yes, our kids get indoctrinated into wage slavery pretty early now. If you want to play the game and go to college, you pretty much have to play the game for the rest of your life.

It really is unfortunate. Talking about it irritates me. Thanks a lot Marge!

Whatever happened to being responsible for one's debt? I understand times are tough but that is not a reason to leave the country. Might be more to this story than meets the eye.

Living on credit has been American's motto for some time. It isn't something that happened yesterday. Want a hamburger, put it on credit. Want some clothes, put it on credit.

I think the government should step in to extend and lower their payments but not forgive their debt

Wow that seems pretty irresponsible to me. They loan their way through college and then decide they can't/don't want to repay their loans and leave the country? That sounds a lot like people who borrow 125% of their home's value and then walk away from their mortgage. Why didn't the students work and take part time classes? Or go to a state school for a couple years and then transfer their credits for the final two years to a respectable school? So many options other than what they did.

I loaned my way through college to the tune of about $45 grand. Sure I hate paying $300 a month in school loans but I wouldn't have the job I do know without my degree. Last I checked my loans were down to about 16k. They'll be paid off before I'm 35.

reply to post by jam321


It is kind of a mixed bag though. No easy answers. I feel bad for the college grads that are coming into the job market today. College has become insanely expensive. They have taken on a huge debt load in the hopes of landing a job that can pay it off. Unfortunately, businesses are too busy cutting headcount and aren't hiring like they should. So kids are stuck with a huge amount of debt and no way to repay it.

Originally posted by marg6043
reply to post by Karlhungis

 

Interesting, you may be right, it will be many that if they can afford to flee the nation to avoid their bills they will.

My daughter was caught in the student loan also, but we helped her with the expenses so her debt is now under 10,000 dollars, but that doesn't count the credit card debt tha she also have from her student years.

In order to avoid the incredible high interest she took another loan to pay for the her highest interest credit card, even when she asked over and over the bank of America to lower her interest rates, they didn't even care.

As long as she can keep her job she will pay for some of her bills (we still pay for the rest) and be able to pretend that she has a life of Independence, ( she's planing to move back home in two months) so she can pay her student loan faster.

What a future of our children this days.

I tell people to stay away from bank of america they pretty much rob everyone blind. It's no wonder they can afford to buy up debt the interesting part will be the debt they do buy up, how will it affect the folks who now owe them when they jack up interest rates because the payment you sent 3 weeks early never got deposited untill the day after it was due.

reply to post by Karlhungis


I agree. It is a mixed bag. However, if they are going to do something they need to do it for everybody regardless if they are deliquent or not. I am still repaying 30,000 and it gets rough at times for me as well. I just get tired of seeing government give freebies to one section while other sections are struggling just as much.

Bank of America and Wachovia are the two worst banks in this nation when it comes to costumer care.

Yes is some irresponsibility when it comes to avoiding bills, but as the economy keeps deteriorating and we keep bailing out corrupted financial institutions but not he consumer and the tax payer, more and more people are finding themselves with not jobs.

This means that debt will accumulate, we responsible parents may take some of the debt of our children (this my husband and me in my daughters case) but some others are not as lucky.

I can not even think what would happen if my husband loses his job in this volatile economy.

Then we may find ourselves also in a debt crunch.

But we try no to even think about it.

And I definitely don't want my daughter to flee oversea to avoid her debt if she loses her job

Originally posted by marg6043
Bank of America and Wachovia are the two worst banks in this nation when it comes to costumer care.

Yes is some irresponsibility when it comes to avoiding bills, but as the economy keeps deteriorating and we keep bailing out corrupted financial institutions but not he consumer and the tax payer, more and more people are finding themselves with not jobs.

This means that debt will accumulate, we responsible parents may take some of the debt of our children (this my husband and me in my daughters case) but some others are not as lucky.

I can not even think what would happen if my husband loses his job in this volatile economy.

Then we may find ourselves also in a debt crunch.

But we try no to even think about it.

And I definitely don't want my daughter to flee oversea to avoid her debt if she loses her job

It's just one of those things. Most people go to college accumulate that debt plus with books, required lab purchases, required purchases of school lap tops etc., end up on the credit cards and then if you can't get a job after school due to job availability changing in the last 4 years they went to school well you see my point.

For me it was 2 years worth of hospital bills that killed me initially but after taking care of that I swore I would never go in debt again. I'm sure your daughter will also see that light only at a much younger age than I did.

Well as usual she is working in a field that is nothing related to her line of study, but when you need a job you take whatever comes you way that can help at least to start with.

And as for her debt and knowledge of debt her job is with a bank and she smart girl she is, is learning about how this banks works and how to avoid the mistakes that most people gets into.

But as with everything somethings in life are unavoidable debt and death are two of them.

That is how the system is been set up, to make the consumer fail at every turn.

I am not ashamed to say that I am doing this now right now. I did an MBA and Ph.D. in a business related discipline and finished three years ago. Got great grades, worked my ass off at a state school the whole way. The sad reality in the 21st century however, is that school costs much more in terms of tuition, rent, food, books, parking (and all the other stuff) than you can ever expect to earn while in school and even expect to pay-off as a 30 year old MBA/Ph.D. fresh out of school. The interest and payments will keep you living like a bachelor college student for a very long time. The only answer if you want to have a life, spouse, kids is to think outside the rules of the game that are stacked against you. In the last three years I have frankly earned enough outside the US to live "the american dream". No intention of moving back.

reply to post by marg6043


It has always amazed me that so many people I know who literaly wasted 4-6 years in a college for a degree that they knowingly had no intension of useing in the real working world. The term 'Liberal Arts' in education has to be synonmous with lazy ignorance. Academia has become rich using this terminology for folks who have no idea what they want to do when they 'growup"!! To go into such debt for a degree that is of no use astounds me! Of course, I'm just a self educated redneck so college never apealed to me!!

Zindo

300 Million Americans to become worldwide refugees seeking political assylum from thier own government.

Who will take us?

[edit on 28-10-2008 by In nothing we trust]

You tube video

You tube video

Take a look at these.....it will really make you think....

I know college is a set up....too bad it is after I already owe a large house worth of student loans....

Sorry I cant fig out how to embed youtube vids yet....damn college education!!!!!!

reply to post by marg6043


Someone asked for advice on ATS about this.. huge amount of debt, no family, no relationship, no job (yet) and I say hey, your young, on your own.

Move over seas.

One thing to remember is not your student loan collectors, but the IRS.

If you leave the USA and repudiate your citizenship, the new law says you are still AUTOMATICALLY a citizen for 10 years from the date you repudiate. In other words, you owe taxes on all income, even income earned in your new home (and taxed by your new ruler). So if you ever DO want to return to the US, you'll be looking at tax, penalties, interest and fines. Hence, possible jail time.

that's even MORE of a deterrent than back penalties for student loans.


All the bets.

So that means that once this students leave the US they will never be able to comeback, no even to visit their parents and I thought this only happens with refugees of dictatorships and communist countries.

It's somewhat embarassing but I haven't paid my student loan for 20 years. Its not that I can't pay or that i didn't borrow the money. it is because the banks really screwed up and committed a bunch of illegalities an unfair actions in connection with my loan.

First off, about three weeks before the end of my 5th semester in school I had a serious accident and was forced to withdraw for the semester and move back home for a while. Student loan administration is so screwed up that it was two weeks until the end of the semester and I still don't have my loan check. I owed the registar for tuition, the bookstore for books, my landlord for rent, cafeteria for meals, etc. Once I recover enough to start looking into things, about a month later, they tell me that since I withdrew I could no longer get the loan and would have to reapply to get it for the next semester. I had no choice at this point but to switch schools, drop out for a semester and work two jobs to get the money and pay what i owed to the school,lanlord, bookstore, roommates. Also had to pay the roomies for the next semesters rent even though i didn't live there anymore. I continued to work my way through school, and eventually graduated with a B.A. after about six years. I graduated with $4500 debt. $58 a month payment, all very manageble.

So then I graduate and get my first job as a golf pro. I pay on the loan for a year or so and then my last payment comes back as undeliverable. I can't find out anything on the phone, no one can find my loan. Turns out the bank that gave me a loan, which was a different bank then where I signed for the loan, was bought out and then that bank was bought out and then one last time that bank was bought out. Way too complex for me at that time as I knew nothing about the market and buyouts and the such 9seemssilly i was so naive now that I am a Investment Adviosr). After repeatedly trying to contact them with no success and getting no correspondence for more than a year, I just gave it up figuring that the loan was lost in the process and why beat a dead horse.

So a year or so later, a debt collector calls my boss at the golf course and tells him that I am a deadbeat and I owe them money and they going to take all my pay until i pay them back, etc.. Before I get the message they went through the same routine with several other pro shop employees. I am absolutely humiliated. So then I call and say yeah it is my loan, i attempted to pay, bank could find it and so on. Finally we agree to a payment plan which required me to pay them $750 up front and $200 month. I was able to do so for a year or so and then the golf course was destroyed by Hurricane Andrew and I found myself with no paycheck for over a month. That month I sent them a $50 payment, all I could afford, and explained about the hurricane, etc. They return the check, say I broke the agreement (technically true but come on), and now want another $750 deposit to start a new payment plan. They also call my employer again and disparage and threaten me like before. At that point I had had enough and I haven't paid them another dime to this day. I still get a call every month or so from various credit agencies.

I have notified every credit agency that contacts me and also the Department of Education (they guarantee the loans) that I would be willing to resume paying on this loan under the original terms but that I will not negotiate with a credit agency and only directly with the Department of Education. I have asked for in person meetings and hearings which are always denied. I would like to pay the loan but I am not giving any money to collection agencies who have abused my rights from day one. Hell one time they called, it was girl who spoke to my wife, who tried to insinuate that she was my girlfriend. My wife is a sharp cookie and caught on and gave her living hell.

Bottom line is I don't know why anyone would have to leave the country in order to avoid paying their student loan. That seems a little extreme. maybe they will catch up with me at some point and hopefuly I will be able to state my case in court and hopefully be able to toss out the interest and penalties. I paid almost $3700 on a $4500 loan and they say I owe over $10,000 still.