Question: Sorry about reposting this. I think I posted it wrong the first time.

I hope that someone can help with some information. I have about $17,000 in student loan debt (GSL). Since leaving the university, I have married and migrated to Australia (my wife is Australian). The problem is that I don’t make much money to start with and the exchange rate to the US is about 0.60 from Australian dollars. In round numbers that means that my ~$300 per month payment becomes ~$500 per month. That size burden will severely compromise my new family, and rather than allow that to happen, I am considering default. I do not want to ruin my marriage, only to be forced into default anyway. My question is, what can they do to me? If I become an Australian citizen, for example, will the government be able to continue to chase me? What if I stay a permanent resident, but still a US citizen? What legal proceedings can they take that will have effect overseas?

My current immigration status is as a temporary resident, pending a two year post marriage period. That period will be up this November, at which time I will become a permanent resident. After that I need to wait two more years before applying for citizenship. I am not in default yet, as far as I know, but I am probably very close to it. I realize that this is probably a bit unusual, but surely this is not unique. Does anyone have information on this? Anything would help.

Answer: A 60% effective increase in payments can do that to a person.

I don’t know if you’ve already contacted your lender to inform them of your change of address. Failure to do so might be a breach of your agreement with them. Then again, you may be contemplating a silent exit, leaving them to figure out where you are. That, too, might be understandable if you have already reviewed the options that they can offer and have concluded that they will simply hound you and that you’re going to be in breach soon enough anyway.

If you haven’t reviewed the options they can offer, you might want to talk to them and/or look at the options for deferment or forbearance listed in your promissory notes. You might also want to review the federal regulations in 34 CFR 680 or thereabouts — ask your librarian or law librarian (at the courthouse or a nearby law school). Depending on the circumstances, there may be some income-related provisions that could give you some longer-term relief. If the move to Australia is going to be permanent, the deferments and forbearances may peter out after a few years, bringing you back to the same default conclusion. The result would not be as hasty, though, and would present more clearly the fact that you worked with the system to the best of your ability.

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