Some student loan borrowers have fled the US UU 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 in Colorado. While there is no data on how many borrowers have gone abroad to avoid paying the debt, CNBC observed Facebook groups and Reddit channels where people described the US flight from the debt crisis of the United States. students.
The federal government can garnish wages and tax refunds for borrowers working in the US. UU But not for those who work 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 who specializes in student loan debt, borrowers who re-enter the United States and continue without making payments 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. Sen. Elizabeth Warren, a Democratic presidential candidate in 2020, offered a plan to eliminate the student debt of 42 million Americans, funded for taxes on billionaires.
A borrower who fled to Japan told CNBC he worked several jobs to repay his loans but could not afford health insurance yet. "I wish I could go back to the United States and not be afraid," he said.
Read the full story on CNBC.
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