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"Guaranteed" means the government -- ultimately -- guarantees the banks that they'll get their money. But what that really means is that the borrower of a stude
by mariodiana 12y ago
"Guaranteed" means the government -- ultimately -- guarantees the banks that they'll get their money. But what that really means is that the borrower of a student loan lacks almost all of the consumer protections that any other borrow has. The government will garnish any wages, social security or disability checks, or anything else they can get their hands on. And that goes on until the debt is paid or you die.
- sjg007 12y agoPeople have done this. If you search around Google you can find details. Your credit is ruined for 7+ years but in default the loan stops accruing interest. The government will pay the loan off but then the government will garnish wages and tax refunds at a specific percentage until the principal is repaid.