# US Student Loans



## Crat1970 (Aug 25, 2013)

Hello, I am new to this post but I have a similar situation. I graduated in 2001 and immediately moved to the Czech Republic. I tried for a while making payments etc, but due to some unexpected family problems was suddenly faces with a hard custody battle, loss of job etc. Currently am a single mom of two, teaching English and making less than 12000$ a year. Here, it is duable and the children are fine. Obviously we don't have a car or other property here but because schooling, insurance etc is free we are managing. However, we have shared custody and the father will not let us (or rather the children) to the US. Suddenly a collection agency called me and a friend of mine (I guess they were good at googling). Should I try settling with them? they currently want more per month than I make in half a year? Or should I just tell them the truth and hope they will "forgive" ? I has been 12 years since I graduated.


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## Nick2008 (Aug 25, 2011)

Hi Crat1970, I am very sorry to hear about your dilemma. I used to live in Prague long ago, it is a very beautiful and affordable city. Not many places in Europe will let you survive on less than $12,000 a year.

I assume that you are a U.S. citizen, but correct me if I am wrong. I am no expert on custody issues, but how can the father "not let" you into the U.S.? 

One important thing to remember about collection agencies is that they have no authority whatsoever. Their main job is to annoy and scare you into repaying your debts. Only a court can authorize to garnish your wages or freeze your bank accounts. In reality, few collection agencies will go through the legal hassles, especially if you are living abroad.

If you are not U.S. citizen, then I wouldn't even give second thoughts about them calling you. A U.S. collection agency can't really do anything to you if you live in the Czech Republic, you only need to consider them if you return to the U.S. permanently.

Are your loans from the U.S. government or from a bank? If it's from a big U.S. bank that has a presence in the Czech Republic then the bank in the U.S. could possibly "sell" your debt to its Czech Republic subsidiary and try to pursue you.

Unless that's the case and you intend to continue living in the Czech Republic, I don't think you need to worry about paying the exorbitant amount of money they want you to pay. Your children and livelihood are much more important.


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## Crawford (Jan 23, 2011)

You do need to remember that your student loans are not forgiven in the US unless in some special circumstances.

They will be on your 'record' and can be garnished from your Social Security in the US.

So if you do return to the US they will be waiting for you.


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## BBCWatcher (Dec 28, 2012)

To reiterate, I'd seriously explore both the income-based repayment and the Additional Child Tax Credit. The former limits your repayments to 10% of income while deeming you nondelinquent as long as you're following the plan. That seems like it'd be a more reasonable price if it eliminates the low but nonzero risks of debt deliquency from afar. The latter can boost household income which, especially at $12,000/year, would be very, very helpful.


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## rimatt (Jul 22, 2014)

Yes, you will not be able to live and work in the USA without having any repercussions, not even bankruptcy will wipe out US student loans. I highly suggest you stay overseas. Also Federal Student Loans cannot garnish your wages in another country... if you give them your address they can harass you and use scare tactics as that is what they do to try to get to you... Ask them to verify the debt. The other thing you can do is use up all your economic hardship deferments and unemployment deferments then reconsolidate your loans then you can go through the entire deferment system again as it will be a new loan... once this runs out only forbearances remain which allows interest to accrue and keep compounding on principle balance... In US you can ask them to prove the debt or verify the debt and get out of student loans through that system but you would have to be there to do all those legal letters and mail can go back and forth for over a year or so and still affect your credit report in US. YOU CAN ENTER US with loan debt or credit card debt- they cannot stop you at the border like in Down-under student loan they can.


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## rimatt (Jul 22, 2014)

One other thing forgot to mention- you must be a resident or citizen of the country you are in and not claim US Tax residence status or else they can get you if you are paying US taxes overseas and only hold US Residency or Citizenship.


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## Crossfeather (Sep 22, 2014)

*Ex Pat in Germany*

Hello, I am also an American citizen and have been residing in Germany for over 9 years now. I have a huge outstanding student loan that I have been trying to pay off for more than ten years now. I have been constantly in between jobs and putting it on forbearance but it keeps adding up in interest. It takes forever to pay it off. Now that my wife is expecting I have had to put it on forbearance for another year. There will be a time when I won't be able to afford it especially since I only work part time as an English teacher here and my wife makes most of the money. What would the worst happen if I refuse to pay it and let it go into default. Would there be any criminal or legal repercussions or even garnishing of the wages I earn here in Germany?


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## BBCWatcher (Dec 28, 2012)

I think you've posted this question twice, Crossfeather. Please look to the other thread you started for for some answers.


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