Home Protection: The Government & Student Loans

With a properly-designed, family-specific college planning campaign that you’ve implemented and followed, neither you, nor your student has reason to fear school loans. The loan repayment strategy built into your campaign allays those fears.

But, if you haven’t started your campaign, if you haven’t contacted us for assistance in developing that campaign, then you may have every reason to fear school loans. Especially, if you don’t have a repayment strategy and you end up defaulting on the loans. And, when you default…

The government is gonna get ya!

Every day, roughly 3,000 people default on their federal student loans, resulting in an unpaid bill of $137 Billion. For years, the government has hired debt collection agencies to call and send letters.

The government has long been able to garnish wages, divert income tax returns, and redirect both Social Security and disability benefits. Now, however, the government is implementing a new strategy.

During the past few years, the government has sued defaulting student loan borrowers. In nearly every suit, the government wins.

What does Uncle Sam win? A lien on borrower’s assets. The debt is now attached to the borrower’s most valuable belongings – most likely, a home.

Once a lien is in place, the government can force the sale of a home. Though exceedingly rare, it sometimes happens.

Realistically, due to the ever-increasing cost of a college education, the need for both student and parent school loans is a fact. Students and parents will take the loans. However, those loans should be taken with proper planning for repayment in place.

Protect your wages, income tax returns, protect your Social Security benefits, and, most importantly, protect your home with a properly-designed student loan repayment strategy.

Contact our Professional College Planners to schedule your appointment today!

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