Only in America this can happen

[jacko]

Its not really 15%, when you factor in tax withholdings and exemptions. A lot of SL borrowers and the defaulters do not realize that the garnishment route is more economical.

I put my BK on hold due to my $30,000 SL(U.S. Federal subsidized) which is on its third year long deferment. Have a 3.5 % interest rate. Also on the hook for $7000 in unpaid HOA's and back taxes. As long as I am unemployed with no health insurance, I do not see the point in filing for now.

The private SL's are subsidized by the Federal gov't if the borrower defaults. That program was such a give away to the banks.

Jacko, As you know, 15% garnishment is a bargain for me. Until there is a possible change in the bankruptcy laws, I will budget the 15% as part of the cost of my education so many years ago. At least I am fortunate enough to be employed in an area of my graduate degree.

One very large issue with some of the advocacy and change sites is the problem of singling out private loans over federally backed SL's. The bill that some are requesting to be considered by Congress has a focus on private student loans and bankruptcy. As for myself and many others without private SL's, we are unwilling to support a possible bill that will only refer to the private SL's. At the very least, I have requested that my state representatives think about including Federal student loans as a priority debt in a Chapter 13 BK, with any unpaid amounts discharged at the end of five years.

Until I get some relief from the BK laws related to student loans, 15% will remain a bargain.

[treehugger1]

Jacko, As you know, 15% garnishment is a bargain for me. Until there is a possible change in the bankruptcy laws, I will budget the 15% as part of the cost of my education so many years ago. At least I am fortunate enough to be employed in an area of my graduate degree.

One very large issue with some of the advocacy and change sites is the problem of singling out private loans over federally backed SL's. The bill that some are requesting to be considered by Congress has a focus on private student loans and bankruptcy. As for myself and many others without private SL's, we are unwilling to support a possible bill that will only refer to the private SL's. At the very least, I have requested that my state representatives think about including Federal student loans as a priority debt in a Chapter 13 BK, with any unpaid amounts discharged at the end of five years.

Until I get some relief from the BK laws related to student loans, 15% will remain a bargain.

[jacko]

As a nation were not to bright. In other industrialized nations, this would not be tolerated.

http://www.valleyadvocate.com/article.cfm?aid=12585

For most defaulted borrowers, a 15% garnishment is a bargain and if only they knew.