Interesting: could I get out of my huge loans by moving abroad?

[avacado]

http://biz.yahoo.com/cnnm/081024/102...pf=family-home

Is this really possible, nobody will come look for me?

[Habeed]

Is it a crime to not pay your financial debts? As far as I know, in most cases, no. Is it a crime to not show up in court if you never receive a summons because you are in another country? Possibly not.

There may be some creative way to read criminal code that makes leaving the country to avoid paying your debts a crime, but in practice there likely isn't.

As long as you did not return to the United States, I suspect you would not be extradited and would be 'scott free'. Actually, you probably could return here as well...don't see how being in default on some debts would add you to a 'persona non grata, watch list'

If you completed your training, it might even be possible to work as a physician in the country you moved to. I don't see how being in hot water with the student loan collections people could prevent that.

You'd probably want to be approved to emmigrate before you went into default, however. In some countries, they might check your US credit report before approving your visa. Then again, maybe not even that.

Obviously, consult with a lawyer before doing anything rash. But I get the impression that you are asking this question just out of curiosity's sake. I am curious as well...just how far does the long arm of the student loan collections agency really go?

[Hednej]

I believe your co-signers will then be responsible (your auncle, aunt, etc), unless they move out of the country with you.

[Habeed]

Hednej : most of the federal student loans don't have co-signers.

[dragonfly99]

It's hard to fell really sorry for the guy in this story because he borrowed $160k to get a master's in music. It doesn't take a CPA to figure out it's going to be hard to make enough money to pay that back as a music teacher. He could have likely refinanced the loans to stretch them out to a 30 year repayment plan instead of a 10 year one, in which case he wouldn't have owed $1600/month.

[dannye3]

Originally Posted by dragonfly99

It's hard to fell really sorry for the guy in this story because he borrowed $160k to get a master's in music. It doesn't take a CPA to figure out it's going to be hard to make enough money to pay that back as a music teacher. He could have likely refinanced the loans to stretch them out to a 30 year repayment plan instead of a 10 year one, in which case he wouldn't have owed $1600/month.

Doesn't it say $2,400/mo on there?

You can get into $150,000 worth of credit card debt and you can declare bankruptcy and you can go on with your life. But with student loans, you're being punished for being a better person."

Maybe I'm alone on this, but I don't feel sorry for him at all. He should have known what he was getting into.

"Punished for being a better person." - More like punished for being too irresponsible to not know what you're getting into.

[InertiaCreeps]

You probably could get away with it, but it would be a phenomenally pathetic thing to do. Accept responsibility for your decisions and don't run away from your problems.