US Marshals Are Arresting People For Not Paying Student Loans

a reply to: SkepticOverlord

I didnt get an education, yet I am less poor than people with marketable skills.

Great job nation!

originally posted by: SkepticOverlord
In an insidious and relatively new twist in the student loan crisis, the US Marshal Service is arresting people for not paying their student loans. And sometimes, showing up with guns drawn in an overwhelming show of federal government intimidation run amok.

US Marshals arresting people for not paying their federal student loans

Paul Aker says he was arrested at his home last week for a $1500 federal student loan he received in 1987.

He says seven deputy US Marshals showed up at his home with guns and took him to federal court where he had to sign a payment plan for the 29-year-old school loan.

Federal student loans are the only form of consumer debt that cannot be dispatched through bankruptcy, and collection of defaulted loans falls to the government. While to most, it might seem like a no-brainer to have to "pay the piper" when a loan comes due, there's more to the story.

Is the Federal Government a Predatory Lender?

Most financial aid professionals recommend federal student loans because these loans are cheaper, more available and have better repayment terms. But, federal student loans also share many characteristics in common with predatory loans. So, let’s consider the question: Is the federal government a predatory lender?

A predatory lender makes loans with unfair or abusive terms and conditions, where the lender coerces, induces or deceives the borrower into accepting the loan. A predatory lender may also take advantage of a borrower’s lack of understanding and lack of sophistication with regard to complicated financial transactions.

The U.S. Department of Education makes loans without regard to the borrower’s future ability to repay the debt. Federal Perkins and Stafford loans, for example, do not consider the student’s credit history. Aggregate loan limits are not based on the student’s likely income after graduation.

The U.S. government’s predatory-lending program

America earns $3 billion a year charging strapped college parents above-market interest. "It's like 'The Sopranos,' except it's the government."

As if that wasn't bad enough, student loans and the rising cost of college tuition is a scam worthy of prosecution under the Racketeer Influenced and Corrupt Organizations Act (RICO Act). Except that, in this case, the federal government is responsible and profiting from it.

Beginning in 1976, the federal government passed laws to exempt student loans from being discharged via bankruptcy within the first five years since the loan was origination. Then in 1998, the time limit was removed, making it impossible to discharge this form of consumer debt via bankruptcy.

Remember those dates, 1978 and 1998, two milestones in the creation of this financial fraud on American citizens. Now, look at this chart that shows the relative change in consumer prices since 1978.

Realizing that easy money was available to students, the cost of tuition began to rise at a rate well above any other consumer expense, in lock-step with the laws protecting student loans from bankruptcy filings in the first five years. Then, a second spike after the 1998 revision to the law, removing the time frame, denying bankruptcy completely.

College tuition has risen at a rate of twice that of medical costs, and nearly 3.5 times everything else. Predatory federal loans enabled the insane rise in tuition. And now, if you can't pay, serious people with guns will be at your door.

This is your government sticking it to you. If anyone else did this, they'd be in jail.

Haven't seen the video and only read a few pages of this thread and I'm wondering if this person was gainfully employed with substantial pay and could have paid but chose not to.

My degree is a BA with a major in Criminology/Criminal Justice, obtained in 1999.

Paid on the loan monthly up until 2005, then stopped after a divorce I did not initiate, former spouse military and the bread winner. Stuck with huge debt from the marriage, lost my business and since then, the highest paying job I was able to land was at 13.00 an hour, which was seasonal. The others were at 8.50 an hour to 10.00 being the standard. At one point I had a day job and an over night job taking 5 hour energy boosts to combat fatigue, which didn't work. Employers that paid decent or were in professional fields had become tighter with taking on new hires or stopped hiring all together. In between working the jobs that kept me in poverty and unable to pay debt, including SL debt, as every penny goes to rent and utilities being so grossly high, the resumes and applications I submitted to those places were ignored. HR was a maze to check on status and if I did manage to get a hold of someone, they sounded annoyed and were short with me. I never recieved any contact on all the resumes I submitted for civilian professional positions working for various alphabet agencies or the military listed on USA Jobs. I could literally see the job market get progressivly worse every year in real time since the start of the Obama Admin. Many news sources echoed what I was experiencing but there were just as many who said it was great. People who had money were not making any moves. This is understandable, but it hurt so many thousands and thousands of Americans to their very soul.

Wrapping this up, I had no hope in sight for ever finding THE job, couldn't pay debt, tried to re-enlist into another branch of the military, (I had served for 4 years, decades ago), the only thing I felt would offer me steady income and a purpose to live. Went as far as MEPS and was not persued. As a last resort I filed for bankruptcy in 2011 which cost thousands of dollars that a live-in partner paid for, to which I would not have moved in, had I the means of an income comparable to the cost of living and emergency expenses like car repair. It is not until after my bankruptcy was approved did I find out I was misled and that bankruptcy can cover SL debt.

I've been homeless in a car, in a shelter, slept in decrepit housing and tiny rooms in trailers, I've put up with partners I would never had been involved with had poverty not been an issue. It is indeed true that the majority of people treat those who are impoverished very differently because money talks and lack of it is BS so it walks. Which is you. Those who are in poverty don't act like people with a lot of love and understanding to give like in a Country Song. Domestic violence is increasing with a lot of it being financial pressure and snapping, then breaking a wife's jaw. The ones who do understand the plight and see what's going on and have a bit of money to spend are preppers, but they are family oriented and don't welcome strangers. Understandably.

I really tried to pay off my SL debt. Owe 800.00 more. That's it. Was almost done. Which could easily be paid off if I had gainful employment.

So they promise people a job as long as you have a college degree... then they say we'll give you monies to get a college degree so you can get a job to pay us back. Then there was no jobs, and you have to pay them with the money you don't have....

I don't know about you guys, but it sounds like a damn pyramid scheme to me... Illuminate?

a reply to: jhn7537


You have to remember that the Cops are under financial pressure to cut costs, bearing this in mind you can see where I am going with this, if its against the law cops have to get an arrest and take the lawbreaker to justice . The more petty laws that remain on the books the better placed is the justice system in keeping their reason for non cost cutting and even increasing their burden on the tax payer. That's what happens when common sense is missing. Its a great scam, because as more and more people get frustrated, and become abusive the more work the cops get. Its just a business model like the military and all the rest. Health care included. Off course in the end the whole lot turns to #.

a reply to: Tarzan the apeman.
I am willing to let the student loans be forgiven.

It is all that money that our government has stolen from the American citizenry, and from Medicare, that I would like to see returned.

I won't mention the 2.3 trillion dollars that Rumsfeld spoke of that supposedly went missing. The government can't go strong arming people about not repaying a debt, when there history of money management is sorely, and surely, lacking.

a reply to: Nyiah

I know I do. I don't want to face any more competition than I have to but that's just me. Obviously there is not a lack of college "educated" applicants but there is a lack of jobs so your argument isn't really valid.

originally posted by: jhn7537
And what's even better, good ole boy Bernie Sanders wants to give EVERY kid free college, essentially flooding the market and devaluing the degree that some of us worked our ass offfor. I was a full time student (12-18 credit hours every quarter), I worked my day job 7-5pm every day and then I did night school from 5:45 to 10pm at night 4 nights a week.. It really pisses me off that I could possibly need to pay off my loan after all that hard work, while some other kids may get it for nothing...

That is silly logic. Someone had to put punch cards in a machine for 2 hours to run a program on a computer, but you don't have to. Public universities used to be free much like highschool is free. Part of your taxes. To not have a college degree in 2016 is much akin to not having a highschool diploma in 1970. Suck it up, I paid for my college too. Doesn't mean I want my kids to have to deal with such a bad burden.

a reply to: greencmp

Goldman Sachs is another name in this. They own Education Management Corporation which owns a number of for profit schools like the Art Institute. They are being sued currently by a number of groups for over stating the value of their degrees, high pressure tactics in recruiting, literally selling worthless and unaccredited psychology degrees and other things. It just feels like a conflict of interest them being able to offer loans in this manner. It would be like me as a dentist giving away free jaw breakers with every visit.

a reply to: onequestion
And at about $15.00 an hour, all the skilled nurses are leaving the field.

That leaves the arena flooded with a bunch of new, unskilled, overworked, angry, nurses; but you get what you pay for.

Why not just take the trillions out of the dollar stabilization fund?
Theres enough to pay off Americas debts and forgive a lot of dead beat government liabilities....
With plenty left over.....

What is funny is that they are expending tax payer money on federal marshals to drag people in to sign a payment plan they obviously cannot pay. They cannot jail them for having debt, so I don't really see what the threat was that makes these people sign payment plans. Did the Marshals threaten to hide their foodstamps under their workboots or something?

Yep college is a scam.
They should legally only be able to offer degrees that are in demand in a significant portion of the private workforce. And only offer Liberal Arts degrees that are teaching degrees. But it's a cash cow for the banks and Government so that's not going to happen.

I should have majored in engineering or science

At first I hated my job but I'm almost grateful I dropped out of school and was lucky enough to be paid to learn a trade as an apprentice. Now I run a small crew and feel really sorry for people still paying off student loans for education that should be free.
If the government's can justify spending trillions on bailouts and massive amounts to create a military edge why can't they see the logic in investing in our futures by making education more accessible.

a reply to: SkepticOverlord

I wonder what the cost would be for seven deputy US Marshals to showed up at his home with guns and arrest him.

Let alone they throw him in jail for however long.

Under $1500 ?

Ya think?

The Government should charge all institutions of higher learning for fraud. What person would pay $60k for a crap degree that is worth nothing in the job market if these institutions didn't sell them as a job worth $100k a year job on the open market? The huge increase cost is also a scam as they continued to make more and more profit with large increases with their scam. I'm surprised students have not sued their schools to pay off their worthless degrees loans.

But no, the colleges will keep doing this and the tax payer will pay it off, so sad, I thought paying for three colleges was enough for me, but I guess not...

originally posted by: jhn7537
And what's even better, good ole boy Bernie Sanders wants to give EVERY kid free college, essentially flooding the market and devaluing the degree that some of us worked our ass offfor. I was a full time student (12-18 credit hours every quarter), I worked my day job 7-5pm every day and then I did night school from 5:45 to 10pm at night 4 nights a week.. It really pisses me off that I could possibly need to pay off my loan after all that hard work, while some other kids may get it for nothing...

Its not for nothing, you and i wpuld both be paying for thwir degrees, which would be entirely worthless to most graduates as there are already masses of people with degrees needing jobs that dint exist. In addition to having to pay forntheir degrees with pur taxes after working to pay for own education, the flood of millions and millions of people looking for the same jobs that arent there will drive down wages. But dont worry, we will all be held up at 15 dolllars an hour. Of course because everybody makes that and production hasnt changed, it will be the new poverty line. A lot of new welfare will be needed to sypplement the new masses of poor so we can eat. Which will come out of increasing taxes or inflation, both of which continue the cycle of poverty.

But as to the OP itself - its a shame how education has becone just another scam. Anf its absolutely sick that the government jack boots are raising their rifles to support the predatory lending of,banks. If banks make bad loans,,they should have to eat,them.

Perhaps the government could simply deduct the money form the Social Security money it collects from our paychecks every year

a reply to: SkepticOverlord

Student loans are absolutely predatory. Any time I've ever been in a position to talk to someone about college my advice to them has always been to pick a school based on cost. The last thing you want to do is take student loans, and if you do have to you don't want to take many. It has taken me a bit longer to get through school as a result, and my diploma doesn't have a fancy name on it, but it's worth it to not have any debt.

On the other hand, a few years ago a friend of mine who didn't take my advice went to Ohio University. He had just gotten out of community college (transferred, didn't graduate) and was living on his own for the first time ever. He moved to Athens and went to school entirely on loans. His tuition was around 12k for the year and he didn't work so he spent another $15k on room and board bringing him up to $27k. Then he failed because he partied too much. Went back home, but couldn't get a job to repay any of his loans. They defaulted, which made them automatically jump to $37k. It took him 2 years to find a job, at which point the interest and penalties had brought the loans up to $55k.

$55k for a year of schooling that he didn't even complete just isn't right. Today he owes something like $75k, and likely will never earn enough money to pay them off. He tried, putting 33% of his earnings every paycheck into them, but that doesn't even cover the interest that's building up.

making a noob move due to lack of time... but does this include the senators and other elected or appointed officals? reason I ask is i read an article awhile back that some senators still owed on theirs. cited under noob move as well... as the 360 Ie is less than stellar for lots of things except for spelling practice.

a reply to: Indigo5 Yes, yes, yes. My son is stuck with a degree and 35k in debt sold to him without listening to my output, for a degree he loved but could not find a job in. So, he has his wages garnished after his debt being sold to a debt collator, who received a judgement and now takes 25% of his wages. So now, with the accruing interest, he feels he will never be able to afford a home and family as it will take decades to pay back. He is a hard worker, working two jobs and all this with a genius iq. Very depressed about our economy, job opportunities and his future. He shares this with so many of his friends. And, no he did not get a BA degree; it was a science degree. This economy is not helping our young people and they are probably the most pessimistic generation with good reason. It is definitely sad. He was talked into this degree with the promise of a great career-at a great university-all agree he was not told a realistic truth about his degree by the marketing counselor. This is sad.