Student Loan Borrowers Refusing to Pay Federal Government
Jason Osborne and his wife are student loan borrowers refusing to pay Federal Government based on their moral stance.
Source: Wall Street Journal
As time goes on and the $1.3 trillion student loan debt increases, more borrowers are in a standoff with the federal government. Across the massive $1.3 trillion of student loan debt, only 43 million Americans hold it. Roughly putting the average person with $30,000 in debt. Chances are good that you might be one of these people.
People who have been exercising non-action against their student loan servicers by simply not paying their loans at all; it appears to be a growing trend. A recent Wall Street Journal article painted the story of Jason Osborne and his wife who have decided not to pay their loans based on their moral stance against the government. Osborne and his wife studied to go into the health-care industry, but once they’ve finished school they were unable to find jobs in their chosen profession. Now, they have decided to take a stand against the Federal Government who are, in their eyes, setting them up for failure. “Do you think I’m going to give them one penny I’m making to pay back the loan for a job I’m never going to hold?” Osborne proposed.
An admirable stance, but not paying student loans for at least a year will result in loans going into default. Default will inevitably impact the borrower’s credit. Beyond this, it will severely hinder one’s ability to save and spend in the future. With 43 million Americans all in debt with student loans alone, the economy becomes hindered as well. On top of all this, it can result in garnished wages and tax levies.
If you’re like the Osbornes with debt you can’t afford, refusing to pay your debt should not be an option worth considering. . If you’re between jobs or your wage isn’t high enough to afford your current payments research repayment options that may be available. You could also consider entering a forbearance or deferment. Most of all, regardless of your current income status, you should always avoid abstaining from your payments altogether.
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