US/UK student loan agreements

Not sure which section to put this in but I have a student loan...legal dilema.  Im not a student, so didnt think the student section was appropriate.

Well anyway, I owe a fortune in US student loans (graduate school) and to be honest, the only non-suicide way I can see out of this is to leave the country.  So Ive been taking steps to do this for the past couple of years.

I have dual citizenship in the US and Denmark so moving to the UK is what I plan on doing.  If I stay in the US and dont pay the loans (I simply can not pay them) they could take tax returns, property, garnish wages, ruin your credit, and whatever else.  But what could be done if you live in the UK?  I assume they wouldnt take your UK tax returns, or property, or garnish wages (but maybe Im wrong).  The main thing I think they could do is credit-related.  So does anybody know if theres much sharing of US/UK credit information or anything along these lines? 

Im all for paying debts, but this student loan business is unconscionable.  Theres no possible way that I can even put a dent in the amount that I owe, and there must be millions of people in a similar situation.

So, you borrowed the money, used it to fund your education, and now you think it's somehow wrong of the lender to expect to be re-paid?

Student loans fall into a special category of debt -- they can't be written off.  The government wants its money and will usually get it one way or another.  I'd suggest you contact the loan companies to arrange for lower monthly payments (of course you'll be paying back for a longer period and will probably pay more in interest).  I really hope you'll take responsibility for your debts (the details of which you knew from the day the loans were processed) because your nonpayment, combined with those of others, will have an effect on the system as a whole.   

Plus, you don't ever know if you'll NEED to return to the US -- much better to return to debts you've been slowly paying than to ones you've pretended don't exist for several years.

Not sure which section to put this in but I have a student loan...legal dilema.  Im not a student, so didnt think the student section was appropriate.

Well anyway, I owe a fortune in US student loans (graduate school) and to be honest, the only non-suicide way I can see out of this is to leave the country.  So Ive been taking steps to do this for the past couple of years.

I have dual citizenship in the US and Denmark so moving to the UK is what I plan on doing.  If I stay in the US and dont pay the loans (I simply can not pay them) they could take tax returns, property, garnish wages, ruin your credit, and whatever else.  But what could be done if you live in the UK?  I assume they wouldnt take your UK tax returns, or property, or garnish wages (but maybe Im wrong).  The main thing I think they could do is credit-related.  So does anybody know if theres much sharing of US/UK credit information or anything along these lines? 

Im all for paying debts, but this student loan business is unconscionable.  Theres no possible way that I can even put a dent in the amount that I owe, and there must be millions of people in a similar situation.

Excuse me, but how are student loans unconscionable? You signed the papers to borrow the money, nobody forced you. I used the student loan system to obtain my education and was more than happy to pay it back after I graduated. There were several times when making that payment brought my checking account dangerously close to zero but I made them. I made a promise to do it and I did it faithfully for 10 years.

You say your loans were for a graduate degree?!? So you have the capability of making the money to pay back the loans but choose not to? It's people like you that make qualifying for student loans more difficult and also cause the interest rates to go up. If I've got the scenario wrong please correct me, I beg you to give me a legitimate reason why you think you shouldn't have to keep your promises.

Unfortunately, to my knowledge, there is no linking of US credit history to the UK. Oh how I wish there were.....maybe this is something for us to start lobbying for. I cleaned up my credit before I moved here, silly me but I thought I would feel much better knowing I didn't owe anybody anything. Guess what? I was right. I suggest you try to do the same.

So, you borrowed the money, used it to fund your education, and now you think it's somehow wrong of the lender to expect to be re-paid?

My thoughts exactly.

Students loans are treated like back taxes and back child support.  Aside from if you need to go to the US to live (not likely), a hold can and will be placed on your passport if the amount is high enough, and you won't be able to go back even to visit.  Depending on the amount, the creditor can and will come after you (b/c student loans are a special category of debt, as Lola mentioned) and the UK will not stand in their way, particulary if it is the government.  

Also the bankrupcy laws will change in May of this year and it won't be as straightforward to declare bankrupcy unless you're really, really poor.  

And unless you decide to declare yourself as no longer a US citizen, you will still have to post tax returns to the States - so they will still have access to you.  Moving away from loans is not the way to go.  What you can do is talk to the lender about your situation...I had a tough time and consolidated so that my payments are at a minimum - yes, I'll be paying for the rest of my life (it feels) but I'll get them paid off eventually & not kill myself.  You can do this the legal and appropriate way.  Creditors really do want their money so they are willing to work with people who are struggling.  Please....check it out so that you don't ruin your credit or your life.

Creditors really do want their money so they are willing to work with people who are struggling.  Please....check it out so that you don't ruin your credit or your life.

And because, at the end of the day, the loans are government backed, it isn't simply a matter of ruining your credit.  It's a matter of possibly getting into trouble w/the law, b/c this isn't a normal commercial debt; this is why bankrupcy does not expunge student loan debt any more than back taxes or child support arrears. 

I had to declare bankrupcy myself due to divorce, medical care costs whilst uninsured, and subsequent redundancy.  I had no assets at all, not even a banger car.  Still had to pay students loans, however.  You can file for forebearance on your loans if you are unemployed, and then negotiate lower payments once you find a job again. 

Insulting tantrum post removed. Sorry you didn't get everyone's full encouragement to dodge your adult responsibilty BruceLoose. Good luck.