Question -University of Phoenix BD & Default FFEL Seize House?

General
#1

Question,

I had a University of Pheonix student reach out to me in completing their Borrower Defense Application. We have been busy putting the claim together. Is there anyone with UofP information or evidence that they could share (misleading ads, misleading prices, etc.)? I checked out the Wayback machine, but I didn’t see anything.

Secondly, this same student has FFEL debt. Is it possible that FFEL loan companies can put a lien on your assets, like a house, if a person files bankruptcy and the student loans are not part of the bankruptcy judge? They mentioned that the LSP wants to garnish their house and wages. I’ve read only one other article on this but wanted to see if there was anything else.

Thanks
-Alicia

#2

Yes, they can garnish wages, Social Security and Disability, take income tax returns and put a lein on your home or any other assets you have.

https://www.cnbc.com/2017/08/15/heres-what-happens-if-you-dont-pay-your-student-loans.html#:~:text=Federal%20student%20loans,-Federal%20student%20loans&text=Once%20federal%20student%20debt%20is,and%20even%20your%20disability%20benefits.&text=If%20the%20government%20wins%2C%20they,and%20even%20force%20a%20sale.