Former college students who have defaulted on their student loans are being sued by colleges for repayment.

According to financial aid expert Mark Kantrowitz,

“They use wage garnishment and treasury offset of income tax refunds to try to collect the defaulted debt, but in some cases you have people who are self-employed who just don’t want to pay back the debt, even though they owe it…,”

It’s estimated that $1 billion in Perkins loans, a loan program for students in dire financial need, have been defaulted on.

 

 

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