Defaulted Student Loan, student loan information?
Anyone know what the latest information is on defaulted
student loans? Client got a call and they talked pretty
rough, according to her. What club are they allowed to use
these days to hit the defaulted party with? There is the IRS
refund offset program and the fact that the loans are not
dischargeable in bankruptcy. They can also garnishee wages,
if I remember correctly, by going straight to the employer.
Client claims that she has not heard from these folks in
almost 5 years. Anyone know of a website with this kind of
information?
There is a general emphasis on better debt collection
in the Federal government. You might try the website
of the Government Reform and Oversight Committee at
http://www.house.gov. They have done a lot of
hearings and have proposed additional legislation.
On the executive branch side, try the Dept. of Education
and the Financial Management Service (part of Treasury).
I don't know the URL's, but you can get to them through
http://www.whitehouse.gov.