- Some student loan borrowers leave the country to avoid paying their debt, according to CNBC.
- The federal government can not seize the wages of borrowers working abroad. However, the loans do not disappear, and are likely to increase after the late charges and interest.
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Some student loan borrowers have fled the country to avoid paying their loans, according to a CNBC report.
A borrower told CNBC that he moved to India after failing to find a well-paying job after college. There, he found the cost of living much cheaper than Colorado. While there is no data on how many borrowers went abroad to avoid paying the debt, people who have fled the country shared their stories with Facebook groups and Reddit channels that focus on the debt crisis of the students.
The federal government can garnish wages and tax refunds for borrowers working in the US. UU., But not abroad. However, the debt does not disappear and, in general, it would increase rapidly with compound interest and late charges. According to Joshua Cohen, a lawyer specializing in student loan debt, borrowers who decide to return to the US. UU And they continue without making payments they can be sued.
The Americans who stay out there are struggling to pay off their loans. According to Bloomberg, student loan debt has the highest 90-day delinquency rate of all other household debts, such as mortgages and car loans. Some economists say that almost 40% of borrowers could stop paying their loans in 2023.
Solutions for student debt are likely to be at the forefront of the 2020 presidential race. Senator Elizabeth Warren, candidate for the Democratic presidency in 2020, offered a plan to eliminate the student debt of 42 million Americans, financed with taxes to billionaires.
A borrower who fled to Japan told CNBC he worked several jobs to pay off his loans, but he still could not afford health insurance. "I wish I could go back to the United States and not be afraid," he said.
Read the full story on CNBC.