From: http://bit.ly/L8cpwS
"the IRS can take the borrowerÂ’s income tax refund until the defaulted loan is paid in full. [...unless...] The borrower has filed for bankruptcy." But in a very practical sense, if you can't pay your student loan, you probably aren't making much money or getting much of a refund. Allowing someone to get a loan who really isn't smart enough to finish school or get a good job, and then expecting them to pay back that potentially very expensive loan - is that fair? To the person getting the loan? to the taxpayer paying to bail it out? This is *exactly* a parallel to the housing bubble, where people who had no business owning a house (or as much house) were able to get a loan that they were never going to be able to pay back. -Cameron On Wed, Jun 13, 2012 at 2:20 PM, Judah McAuley <[email protected]> wrote: > Student loans aren't forgiven in bankruptcy. If they go into default, > any money owed to you by the federal government (tax refunds, etc) > will be seized and applied to the outstanding balance of your loan. It > is true that it isn't secured by real property, so you can't foreclose > on an education. However, shy of fleeing the country, it is almost > impossible to avoid paying back your student loan, so I'm not sure > where your above statement comes from. > > Mind you, it may not be a good idea economically to have large debts > that you can't escape following a large chunk of our populace. That > could represent a significant drain on the economic activity going > into the private sector. But that is a whole nother matter. > > Judah > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:351938 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
