Student loans in default to be referred to debt collection, Education Department says
Student loans in default to be referred to debt collection, Education Department says
Cool. Picking on people who are already hurting, again. At least they're consistent?
How are they going to collect from people who don't have money or assets?
Doesn't this give a 7 year path to full default and erasure or something similar that federal loans wouldn't have?
Nope. With student loans you're stuck with them no matter what.
Edit: appears they will be going into federal garnishment, not private collections.
Right, but once they are taken by a private collections company, would they still carry that with them? I assume at some point the collections company actually buys out the loan in hopes of collecting more. Once they buy out the loan, they are owed, but at this point it's arguable the non-defaultable student loan was paid.
