Linda Brice graduated from college over 30 years ago, is a U.S. Coast Guard Veteran, and now is a first grade teacher at a Los Angeles elementary school. Due to a defaulted loan of roughly $3,000 from her college days, she just recently had her entire bank account drained by state attorneys and they took over a third of her take home pay. Brice claims that by what they took, she is no longer able to pay for her necessities such as food and gas for her car. Appearing before the court and asking for mercy, an L.A. federal judge ruled for her and stated that as long as she could pay $25 per month it would be acceptable. Reporters claim that Linda Brice is but a glimpse into the action the US government is trying to take in order to receive repayment for the student loans the send out, which adds up to about $1 trillion.
Excluding child support, it appears that students who graduate from college and can’t repay their loans are being treated most harshly by the government in order to get back their funds. Attorneys that are representing the government are taking drastic measurements to obtain money, such as forcing people to cancel health insurance payments and sell their cars in order to pay back large sums rather than agreeing to payment plans for those who still can’t afford it. The government is enforcing wage garnishments for those that are unable to make their payments which is casing a lot of harm in the short and long run. Student loans can be a messy business; according to changes in federal laws in 1998 it is rare that filing bankruptcy will give people a way out of their student loan debt. Many are suffering as a result of these rules because their current jobs aren’t able to supplement enough income for living and loan payments.
While the government continues to place extreme financial pressure on its debtors, President Obama’s speech this July appears to contrast with the laws they are seeking to uphold. He claims that they are trying to find ways in which student loans can be tied to their incomes, which would give more leniencies to those who make less, like Linda Brice a teacher. He states that in 20 years the loans would then be forgiven after the set amount of payments was made. Deanne Loonin, the National Consumer Law Center’s attorney claims that the government is contradicting itself. She asks how can creditors be able to belligerently pursue people to have the loans paid off, and yet Obama promises to make the loan payments road easier for college students? It is a hard pill to swallow, when so much money can be owed or taken away. Contact Malaise Law Firm for the legal representation you need today regarding your wage garnishments!