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> borrowers with successful careers subsidize the less fortunate, who are more likely to default. What does defaulting mean here? If you stop paying, in additi
by guelo 11y ago
> borrowers with successful careers subsidize the less fortunate, who are more likely to default.
What does defaulting mean here? If you stop paying, in addition to ruining your credit as long as you don't pay, the government will hound you for the rest of your life and will garnish your wages and even your social security payments when you retire.
- kansface 11y agoSure, but that doesn't mean the government will get anything close to the amount owed.
- rayiner 11y agoNot really. I don't know how many people are covered by Pay as you Earn, but under that program you never pay more than 10% of your disposable income.
- richardbrevig 11y agoAs well, if having financial difficult, someone could request forbearance for up to 12 months and not have to make payments [0]. [0] https://studentaid.ed.gov/sa/repay-loans/deferment-forbearance#what-is-forbearance https://studentaid.ed.gov/sa/repay-loans/deferment-forbearan...