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  1. #1

    Default What Happens if Foreign Students Don't Repay Their U.S. Student Loans

    I didn't know what the right place was to post this request for your help, forgive me for posting it twice:
    I am a foreigner living in India now. I lived in NYC when I studied there and took a loan from Sallie Mae.
    I paid them more than required monthly for four years and now I am out of work and I don't feel like paying them anymore especially considering the fact that I didn't give them collateral and nobody co-signed. (However, I offered them a settlement at 50% which they rejected.)
    What is the risk of stopping all communication and repayment for good going forward. What is their recourse?
    - I travel to the USA very sporadically and don't really need to travel there. Can they stop me at immigration for not paying my loan? Can they stop me from getting a visa? Can they throw me in jail for defaulting?
    - In the future, can they do anything else than giving me a bad credit score which would stop me from borrowing in the future in the USA? Is there a statue of limitation after a few years that will wash out this bad credit score or the option to rebuild it without ever paying Sallie Mae back?
    - Meanwhile, can Sallie Mae come after my parents (Netherlands, their property or accounts), my own property (UAE, Middle East) or me personally in any way in India (bank accounts)?
    I would love to hear your personal experiences or advice.
    Many thanks in advance.

  2. #2
    Join Date
    Jul 2012
    Posts
    100

    Default Re: Sallie Mae's Recourse on Student Loan to Foreigner Without a Co Signer or Collate

    From what I read, the government can do several things in an attempt to collect on a defaulted student loan. They can intercept your tax refund, if applicable, along with garnishing your wages and even suing, if necessary. Also, from what I read, there is NO statute of limitations on suing for collection of a federal student loan.

  3. #3
    Join Date
    Sep 2011
    Location
    OH10
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    17,019

    Default Re: Sallie Mae's Recourse on Student Loan to Foreigner Without a Co Signer or Collate

    The gov't can refuse to allow you a visa to the US as you have become a public charge.

  4. #4

    Default Re: Sallie Mae's Recourse on Student Loan to Foreigner Without a Co Signer or Collate

    Thanks for your response. In case I move to the US this would worry me. Till that time, I am wondering though whether they can do anything to me as I am a foreigner living abroad.

  5. #5
    Join Date
    Sep 2011
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    OH10
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    Default Re: Sallie Mae's Recourse on Student Loan to Foreigner Without a Co Signer or Collate

    Quote Quoting rogerfederer
    View Post
    Thanks for your response. In case I move to the US this would worry me. Till that time, I am wondering though whether they can do anything to me as I am a foreigner living abroad.
    Not while you are out of the country. Come see us sometime.

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Sallie Mae's Recourse on Student Loan to Foreigner Without a Co Signer or Collate

    They can do what they choose to do, consistent with the laws of the nation in which you reside.

  7. #7

    Default Re: What Happens if Foreign Students Don't Repay Their U.S. Student Loans

    BTW Do you know whether the immigration authorities' (embassy/consulat/immigration at the airport) systems are tied in with US financial firms (banks)? If so, would they have access to visa applicant's financial information in the US (loans and investments) and would they be able to deny a visa based on a default on a loan or worse, take action against the visa applicant in his or her home nation?

    The reason I am asking is because if I ever have to go to the USA for work in the future, it would be a nightmare to be contained at immigration because they checked and see that I am a defaulter.

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