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  1. #1
    Join Date
    Jun 2012
    Posts
    6

    Unhappy Can You Go to Jail if You Default On Student Loans

    My question involves collection proceedings in the State of: California

    Hello, please can anyone give me any inputs on this. I'm kindda of worried.
    I am a student who own $20,000 student loan total, yes I know that is a lot of amount, so I am very worried.
    No more school, now after 6 months I have to start repay my loans. For this past 6 months I cannot find any job at all. I do not have any car, I take public transportation, therefore any job that is too far, very far away, I have no way of getting there.
    Economy is not very good, job within 1-2 hours of where I live, i was not able to find any.

    I have no house, I live with my mother (whom is already tired) and she pays the rent.
    So I really have no asset for the loans people to take, no home, no car, no job.

    Believe me, I want to pay back loans, I just don't have any money, I don't know where to go to find money to pay them back when I don't have any job right now.

    So let say the worst situation, I defer on my loans, they turn me to a debt collector, and decided to sue me. What is the worst consequences, are they going to throw me in jail?
    I really don't want to go to jail
    Any advice be great, thanks,
    very worried

  2. #2
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: No Job, Cannot Pay Back Student Loans, if They Sue Me, Can I Go to Jail

    No jail time for you ... you just joined about 30 other million americans, congrats.

    Never take out loans for school ....

  3. #3
    Join Date
    Apr 2006
    Posts
    641

    Default Re: Can You Go to Jail if You Default On Student Loans

    Hhaha there is no debtors prison in the US.

  4. #4
    Join Date
    Jan 2006
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    38,531

    Default Re: Can You Go to Jail if You Default On Student Loans

    Quote Quoting bam!
    View Post
    Hhaha there is no debtors prison in the US.
    You don't live in Illinois, do you?

  5. #5
    Join Date
    Jun 2012
    Posts
    6

    Default Re: Can You Go to Jail if You Default On Student Loans

    Oh my God, so that means I can go to jail?
    I borrow Federal government student loans, so if the U.S. Department of Education turns me to a debtor collector, they can arrested me and put me in jail?

  6. #6
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Can You Go to Jail if You Default On Student Loans

    No, you will not go to jail for not paying your student loans.
    An intelligent hell would be better than a stupid paradise - Victor Hugo

    Do not microwave grapes

  7. #7
    Join Date
    Jan 2006
    Posts
    38,531

    Default Re: Can You Go to Jail if You Default On Student Loans

    Quote Quoting AOTS
    View Post
    Oh my God, so that means I can go to jail?
    I borrow Federal government student loans, so if the U.S. Department of Education turns me to a debtor collector, they can arrested me and put me in jail?
    sorry, didn't mean to scare you.


    What is happening in Illinois could happen in any state though. What is going on is when there is a judgment against a person, the judgment creditor is going to the courts seeking contempt of court charges against the judgment debtor if the debtor does not abide by the order and pay the creditor. This has resulted in people going to jail for essentially not paying a bill. It is a defacto debtors prison.


    their state legislature is working on a law to stop the practice.

    theoretically, it could happen in a lot, if not all, states. After all, a refusal to comply with a court order is just cause to find the person in contempt of court. Contempt of court can result in incarceration.

  8. #8
    Join Date
    Apr 2006
    Posts
    641

    Default Re: Can You Go to Jail if You Default On Student Loans

    Quote Quoting jk
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    You don't live in Illinois, do you?
    Do you? Educate me please jk.

    - - - Updated - - -

    Criminal court yes, civil court I doubt. Cases please.

    This is 2012, people do not go to jail for not paying student loans. They will mess up your credit and jack you up with collection calls and wage garnishments.

  9. #9
    Join Date
    Jun 2012
    Posts
    6

    Default Re: Can You Go to Jail if You Default On Student Loans

    I understand that but I have no job, I really don't have money to pay them (right now I still cannot find any job, I'm still looking)
    I know if you working and not paying back, you can get in trouble because you have an income, but I have no income. No car, and no house.
    So the debt collector don't care if you have job or no job? If you cannot pay them back, they just throw you in jail?
    The judge will just say go to jail because you do not have any job and cannot pay back loans? oh my god
    Can I ask the judge to help me find a job? I willing to pay them all my job money without holding back a penny, but it just I CANNOT FIND a job right now.
    How long would jail be then? If worst case they I cannot find any job and they decided to sue me

  10. #10
    Join Date
    Jan 2006
    Posts
    38,531

    Default Re: Can You Go to Jail if You Default On Student Loans

    Quote Quoting bam!
    View Post
    Do you? Educate me please jk.

    - - - Updated - - -

    Criminal court yes, civil court I doubt. Cases please.

    This is 2012, people do not go to jail for not paying student loans. They will mess up your credit and jack you up with collection calls and wage garnishments.

    no, civil court. That is why their legislature is acting to fix it.

    Google Illinois debtor jail

    - - - Updated - - -

    Quote Quoting AOTS
    View Post
    I understand that but I have no job, I really don't have money to pay them (right now I still cannot find any job, I'm still looking)
    I know if you working and not paying back, you can get in trouble because you have an income, but I have no income. No car, and no house.
    So the debt collector don't care if you have job or no job? If you cannot pay them back, they just throw you in jail?
    The judge will just say go to jail because you do not have any job and cannot pay back loans? oh my god
    Can I ask the judge to help me find a job? I willing to pay them all my job money without holding back a penny, but it just I CANNOT FIND a job right now.
    How long would jail be then? If worst case they I cannot find any job and they decided to sue me
    relax. Illinois is the only state I am aware of that is acting like that.


    Just keep looking for that job. You aren't the only one caught up in this financial mess our country is facing.

    One thing I will say though:

    communication. So often creditor will work with debtors but the debtors simply fail to ask for help. Speak with your creditors.

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