Economic Stimulus Package is Money Laundering?

I, along with a growing number of Americans, have defaulted on a federal student loan. This means that any taxes that I would get back from the government would instead be directly used to pay off my outstanding balance on my federal student loan. To me, this stimulus package, at least in part, seems to be money laundering on behalf of the US Government. Any ideas on this?

EDIT:

Adding a link to what I'm talking about:

Treasury Offset Payments

Pursuant to statutory mandate, the Department has since 1986 referred millions of defaulted student loan debts to the Treasury Department for collection by offset against Federal income tax refunds and other payables for defaulters. The Department can request the Treasury Department to arrange a Federal offset to collect any defaulted student loan not being repaid by you that has been assigned to the Department or guaranty agency or on which the Department has made a reinsurance payment.

Millions of defaulted student loans......

Definition of Money Laundering

Money laundering is the practice of engaging in financial transactions in order to conceal the identity, source, and/or destination of money.

[edit on 3-3-2008 by gopher mines]

Well, since most things people buy are made overseas, it would also seem that all the money spent here will benefit overseas companies. Especially when you think about where the money is coming from and what the consequences of printing more money out of thin air.

Does anyone have any opinions on this matter, or am I just barking up the wrong tree?

reply to post by gopher mines


They also now have and will use the ability to garnish your wages without a court hearing, and also in states where it wasn'tlegal to do so. I would seriously suggest reaching an agreement with them when they contact you again. Student loans follow you forever.

I meant on the opinion that I consider this money laundering..

maybe i'm thick, but i don't see the analogy between the stimpack and your loan or how it equates to laundering.

Because the money that is in the stim pack goes directly back to the US government

For what it's worth, I get what you're saying, and I wouldn't put it past the government to do something like that.


I'm just really happy I've been saving up money for the past two years.

[edit on 4-3-2008 by HeadFirstForHalos]

I really need glasses.

I misread this thread title as "nOT rEAPAYING lOANS iS tHEFT".

If not repaying a loan is considered theft, then they would charge you with grand larceny. They are the ones deciding to lend you the money, and if for some reason you can't pay it back, then they made a bad decision on lending you the money. If it were considered theft, the would be millions upon millions of americans arrested for Grand Larceny...

Originally posted by gopher mines
If not repaying a loan is considered theft... the(re) would be millions upon millions of americans arrested for Grand Larceny...

Exactly. As a Taxpayer, I would like to see Clean Highways courtesy of deadbeat work brigades. Clean roads, nicely laundered money- good honest work for Misguided Souls who thought there was a Free Lunch in America.

Sorry, but I don't see this as money laundering. The source of the money isn't being concealed by the transaction, nor is the transaction criminal in nature. Having the government apply your 'stimulus check' against your defaulted student loan is no different than having the state garnish wages from some deadbeat who defaults on his / her child support. The simple fact is that if you have a financial obligation, and you fail to fulfill it, the party to whom you are obligated has the right to seek restitution. You gave them that right when you took the check and signed on the (sometimes dotted) line.