<p>I'm interested in this particular situation. Let's say that a person completes their bachelor's and master's degree. In doing so, they acquire a lot of debt (say $40,000 just to throw in a number). What would happen if that person, after completing all of their degrees, just said "screw it" and went to live and work in Europe. Assume the person also has citizenship to the European country they are living in. How much trouble could a person like that get into? Would the government even go after the person if they were in Europe? Would all that credit history stuff transfer over to Europe?</p>
<p>First you have to be a citizen to get federal loans. </p>
<p>Second, you would have to have a cosigner to get Sallie Mae loans or something similar without a job, so if you took off you would screw whomever put their neck on the line for you.</p>
<p>Assume that the person was a DUAL citizen (both the US and another European country). What if it was all government loans and no private loans?</p>
<p>^And likely subject your relatives, friends, etc. to an endless barrage of nasty phone calls! If most/all of that is federal loans, it’s certainly not worth it…first of all, the standard repayment on $40K is under $500/month, and much less if you request extended repayment terms. I can’t imagine the stress, worry, and inability to come back to the US would be remotely worth it. If you wanted to come back in a decade or so the debt would still be there, but it would be much higher and even more difficult to repay.</p>
<p>Fines, fees and interest on defaulted student loan debt can literally double the initial loan… that’s a big gamble to think one would <em>never</em> want to return to the USA in one’s lifetime.</p>
<p>What kind of person would honestly consider doing this? And the job prospects aren’t better in Europe than in the US.</p>
<p>Perhaps the OP is intending to try this. I would not suggest it. It carries too many long term risks.</p>
<p>Interesting that this is the first and only post by this OP. He/she hasn’t inquired about getting financial aid or going to college at reduced costs…only this post.</p>
<p>The colleges where you have debt, will <em>not</em> release your college transcripts and <em>not</em> verify your college degree. So if you find employment in Europe or somewhere outside the US and the employer wants to verify your college degree - well the college will probably not verify.</p>
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<p>This will happen.</p>
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Really?</p>
<p>Nothing on my S’s school’s website about getting a transcript talks about any restrictions on getting transcripts, except that they cost $6.</p>
<p>And I’m not even sure how the school would know - you don’t borrow money from the school, you don’t pay back the school.</p>
<p>And I’m not even sure how the school would know - you don’t borrow money from the school, you don’t pay back the school.</p>
<p>Whomever lent the money- sure keeps track of what schools defaulters attended.</p>
<p>[Former</a> College and Debt Collector Holding My (Future) Education Hostage](<a href=“http://www.expertlaw.com/forums/showthread.php?t=99183&page=1]Former”>http://www.expertlaw.com/forums/showthread.php?t=99183&page=1)</p>
<p><a href=“http://talk.collegeconfidential.com/college-search-selection/731494-still-owe-old-college-money-wont-release-transcripts-there-options.html[/url]”>http://talk.collegeconfidential.com/college-search-selection/731494-still-owe-old-college-money-wont-release-transcripts-there-options.html</a></p>
<p>^^^ In both of those cases, the college is owed the money directly. There is no loan involved.</p>
<p>In the OP’s hypothetical case, they do not owe the school money, so why would the school not release a transcript? Why would the school care if they defaulted on someone else’s loan?</p>
<p>It would be the same as if the school wouldn’t release a transcript because I didn’t pay my car loan.</p>
<p>Unless there is some Fed regulation that requires this of the school.</p>
<p>The OP hasn’t been back to read any of this since the OP was posted. Gotta wonder if this is just a ■■■■■■■■ post.</p>
<p>notrichenough, Perkins loans are federal loans that are owed to the school…they will not release transcripts if those loans are in default. A young friend of mine discovered this the hard way, thought she had consolidated all of her loans after graduation 5 years ago and had never seen another bill, but it seems the school was still holding a small Perkins loan. She never knew until she requested transcripts for potential grad programs and they informed her that she needed to bring the Perkins balance up to date first! She was not happy as they had tacked on 5 years worth of interest and penalties but, fortunately, it was a small loan to begin with.</p>
<p>Default rates for Stafford loans are definitely tracked by school and it affects the refund policies at those schools and can affect their continued participation in the Stafford loan program.</p>