Question: A FEW QUESTIONS ABOUT DEFAULTS:

If someone defaults on a student loan, what is likely to happen to them?

If they live off the books without a regular job, how can the gov’t find them?

How interested is the gov’t in finding someone who’d defaulted? Are people prosecuted or just made to repay.

Is there a whistleblower fee for informing the gov’t of the whereabouts of a individuals who have defaulted?

Answer: The government is very interested in finding someone who defaults on their obligation to the American Taxpayer. The Department of Education has converted and collected over $1 billion in defaulted student loan obligations…

Debtors are not prosecuted – they can be sued to force repayment of the debt obligation. However, the likelihood is a bit low because of administrative wage garnishment as well as other repayment options available to the government and the borrower..

:| >Is there a whistleblower fee for informing the gov’t of the whereabouts of a :| >individuals who have defaulted?

No – In fact, every dollar that is collected, the tax payer is reimbursed for paying the guaranty on the loan. So, the more money the Government collects the more revenue is generated. So – in the bigger picture – you are getting money back through the repayment of the guaranty payments made to the lender by the taxpayer. every dollar that is collected, the tax payer is reimbursed for paying the guaranty on the loan. So, the more money the Government collects the more revenue is generated. So – in the bigger picture – you are getting money back through the repayment of the guaranty payments made to the lender by the taxpayer.

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