Student Loan Debt Alert: US Treasury Collected $6.2 Billion In Student Loan Debt In 18 Months
MFI-Miami has issued this student loan debt alert because your Uncle Sam is calling in your student loan debt. The Trump administration is doing everything in its power to collect from you. It is unknown if Trump plans on calling in the fat guys in tracksuits from the Bronx.
The U.S. government stepped up collections on delinquent student debt to $2.9 billion last year. The government has collected on average about $1,000 from 2.9 million former students according to the Treasury Department. The US Treasury is expected to collect $3.3 billion for the first half of the fiscal year of 2019. The federal government fiscal year runs from October 1st through September 30th.
Student Loan Debt Alert: Stepped-Up Collections Mean More Harassment And More Suicides
The debt load is causing anguish that goes far beyond financial concerns. One in 15 borrowers has considered suicide due to their school loans, according to a survey of 829 people conducted last month by Student Loan Planner, a debt advisory group.
The Consumer Financial Protection Bureau said it’s received 2,475 complaints from borrowers about the government’s collection efforts since the start of 2018, including:
- They call me daily, have called my brother, my father, my ex-brother-in-law, my current brother-in-law, and my ex-husband. They have told these individuals that they were trying to locate me for repayment of a student loan.
- Called my wife –five times in three minutes — son, brother- and sister-in-law — not even same last name — to tell me to pay.
- They’ve contacted my neighbors, my siblings, my sister-in-law ‘s parents, and engaged in harassing phone calls.
Student Loan Debt Alert: Government Is Imposing Strict Penalties
The Treasury Department may withhold federal income tax refunds and Social Security payments including Social Security disability benefits.
The federal government can also withhold state tax refunds and apply it toward repayment of a loan. Treasury is also confiscating State drivers licenses or other state-issued licenses.
The federal court can also force the employer of a borrower to withhold up to 15% of disposable pay to collect on a defaulted debt. They can do this without a court hearing.
A borrower also faces additional costs associated with collecting defaulted federal student loans. This includes the collection cost of placing a loan with a private collection agency. The collection company can also tack on additional litigation and processing costs.
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