US Marshals arresting people for non-payment of student loans

Feb 2010
35,107
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between Moon and NYC
As has been noted...

Doesn't sound like anyone is being arrested for "not repaying their loans".

Some people are being arrested on warrants for not showing up to an assigned court date. Which is really nothing new. If someone is being issued a warrant that should/usually means that a subpoena was served and the individual elected not take it seriously. (which is never a good idea...)



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Libertine

Moderator
Apr 2015
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The U.S. Department of Education is a for-profit bank, it has been for decades, it is only the Trump administration's bad reputation and general excesses that have made this fact plain. It should be a top priority for the next president to reform the system from the top down and cancel the debt of those in need. Any candidate who is unwilling to commit to this does not deserve the Democratic nomination.
Not true, the government became the bank in 2010 when it took over the program to help fund Obamacare. In 2012 rates were raised to 6.8%.
 

The Man

Former Staff
Jul 2011
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It's same shit like in Russia. Over there, the Federal Court Enforcer (Bailiff) Service (FSSP) hunts debtors all over there, especially men hiding out from paying their child alimony, a particularly bad issue there


FSSP personnel patrol airports and train stations looking for debtors trying to flee their city (or the country; you can be banned from traveling abroad for serious debts over there, and FSSP will detain you if you attempt to cross the border). They have the authority to break into people's homes without owner present and without a warrant (unlike ever the actual police!), to confiscate property.

FSSP over there can do all kinds of shit to you. Those dudes are fucking scary...
 
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johnflesh

Former Staff
Feb 2007
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So what would have happened if he refused to sign the agreement?
Good question. I don't know. Probably contempt of court? Guessing.

If so he probably should have had a lawyer with him though I can see how that might be an issue if they just swoop in and arrest you.
 

johnflesh

Former Staff
Feb 2007
27,908
20,738
Weirdo
As has been noted...

Doesn't sound like anyone is being arrested for "not repaying their loans".

Some people are being arrested on warrants for not showing up to an assigned court date. Which is really nothing new. If someone is being issued a warrant that should/usually means that a subpoena was served and the individual elected not take it seriously. (which is never a good idea...)



..
This.

The article clearly stated he was arrested for missing a court appearance. In for only 1 hour and then went straight in front of a judge, signed the agreement and then went home.

The fact the guy didn't even go to prison or jail pretty much nullifies the debtors prison claim.

In this one single case, though.
 

Singularity

Moderator
Oct 2009
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Kansas
Not true, the government became the bank in 2010 when it took over the program to help fund Obamacare. In 2012 rates were raised to 6.8%.
I'm gonna guess you're referring to this?

No. The problems began in the 1980s when Sallie Mae started aggressively marketing student loans as a way for universities to increase their budgets without raising tuition or taking other measures that are subject to state oversight. This rundown, while comedic in nature, lays it all out:


I loaned education money after 2010 at a lower rate than 6.8 percent and have had no problems paying it back. The people who are in real trouble are often those who took out too much money during and immediately after the recession because, out of work, they had to pay for everything while in school with debt.
 
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Libertine

Moderator
Apr 2015
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I'm gonna guess you're referring to this?

No. The problems began in the 1980s when Sallie Mae started aggressively marketing student loans as a way for universities to increase their budgets without raising tuition or taking other measures that are subject to state oversight. This rundown, while comedic in nature, lays it all out:


I loaned education money after 2010 at a lower rate than 6.8 percent and have had no problems paying it back. The people who are in real trouble are often those who took out too much money during and immediately after the recession because, out of work, they had to pay for everything while in school with debt.
No, this.

Loans subsidize ObamaCare

"According to the Congressional Budget Office, $8.7 billion of the money collected in student loan interest payments actually goes to pay for ObamaCare. The CBO estimates that the interest rate on these loans could be reduced from 6.8 percent to only 5.3 percent were the funds not used to subsidize the healthcare reform law and other federal programs.
Alexander notes that the federal government borrows the funds for the student loan program at 2.8 percent and then lends it to the students at 6.8 percent, a markup of 4 percent. "