Can we be arrested if we are not able to pay off our student loan debt? I found it pretty troubling when I came across this article, http://www.fox26houston.com/news/local-news/92232732-story, where it is reported that the US Marshal Service in Houston, TX are going after people that have outstanding student loan balances. Recently Paul Akers was arrested for not paying a $1500 federal student loan he took out in 1987. Is this something we will see more of in the future?

0
0
Marked as spam
Posted by Moses R (MONEY FORUMS: 6, Answers: 1)
Asked on February 17, 2016 6:48 am
70 views
0
Private answer

I heard about this case, too, and have been researching it recently. Fortunately, it seems like this is a pretty rare occurrence. In addition to looking pretty illegal (the US formally abolished debtors’ prisons more than a century ago), it also doesn’t make a lot of financial sense to arrest someone for failing to pay their debt – if you’re in jail, how are you going to make money, and if you can’t make money, you can’t pay off your debt. Obviously I’m not an expert, and with increasingly aggressive actions taken by law enforcement against people with other unpaid fines it might be possible for more cases like this to happen, but overall it doesn’t seem too likely that we’ll see many more cases like this in the near future. Of course, that doesn’t mean the government won’t take other kinds of action against people with unpaid balances like seizing tax refunds or a certain percent of your wages.

Marked as spam
Posted by Emily Morgan (MONEY FORUMS: 4, Answers: 3)
Answered: March 1, 2016 4:45 pm