Quote:
Originally Posted by L-Pink
Student loans are not dismisable in bankruptcy.
|
Quote:
Tax Refund Offsets
The IRS can intercept any income tax refund you may be entitled to until your student loans are paid in full. This is one of the most popular methods of collecting on defaulted loans, and the Department of Education annually collects hundreds of millions of dollars this way. In some cases, you can challenge a tax refund offset. You can learn how at www.studentloanborrowerassistance.org. You may need the assistance of an attorney. (You can find a legal expert near you on Nolo's Lawyer Directory.)
Your Paycheck Garnished
The government can take ("garnish") a limited portion of the wages of a student loan debtor who is in default. It can take up to 15% of your disposable income. However, it cannot take more than the equivalent of 30 times the current federal minimum wage.
Your Federal Benefits Taken
The government can take some federal benefit payments (including Social Security retirement benefits and Social Security disability benefits, but not Supplemental Security Income) as reimbursement for student loans.
You Get Sued
The government and private lenders can sue you to collect defaulted student loans. Unlike other debts, there is no time limit on suing to collect student loans -- you can be sued indefinitely.
|
In short, they are not dismiss-able by law.