Finance Q&A

Anyone know what the latest information is on defaulted student loans and a website with this kind of information?

Q. Anyone know what the latest information is on defaulted student loans? Client got a call and they talked pretty rough, according to her. What club are they allowed to use these days to hit the defaulted party with? There is the IRS refund offset program and the fact that the loans are not dischargeable in bankruptcy. They can also garnishee wages, if I remember correctly, by going straight to the employer. Client claims that she has not heard from these folks in almost 5 years. Anyone know of a website with this kind of information?

A. -There is a general emphasis on better debt collection in the Federal government. You might try the website of the Government Reform and Oversight Committee at http://www.house.gov. They have done a lot of hearings and have proposed additional legislation. On the executive branch side, try the Dept. of Education and the Financial Management Service (part of Treasury). I don't know the URL's, but you can get to them through http://www.whitehouse.gov. -Try: Guide to Defaulted Student Loans: Http://www.ed.gov/offices/OPE/DCS -First of all, and off the record, I'm glad they are hitting hard. It just hurts those that paid up. Now, to the question - the IRS has *farmed* this out (actually date 1/11/99) and so I'm sure they are getting the ducks in a row for the new system to take effect. I posted the information as I have it a week ago under Treasury Offset Program if you want to backdate and find it.

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