What happens if a person refuses to pay federal debt?

I only earn $4000 per year and I have no property. What happens if I decide not to pay federal loans? I have no assets. They refused to renew my repayment plan after I tried to recertify 5 times. I don’t want to pay a tax bill in 20 years. My original debt doubled.

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Hi @Aura1960,

This doesn’t sound right to me. If you make $4,000 a year and these are federal student loans, then you should be able to get into an income driven repayment plan that lowers your monthly payment to $0. If you want to DM me I can set up a time to call your servicer with you and figure out what is going on. Although they might be swamped right now with everything that is going on. Maybe something else is happening here, in which case I can try to help you understand what is going on and what your options might be.

In the meantime, please join the student debt strike and spread the word: strike.debtcollective.org

Organize locally and call your Senators and Rep and demand full debt cancellation: Organizing to win College For All

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I have been told I have to apply for a new plan. They have already received my tax information. I wasn’t late recertifying. As usual, there is a glitch in the system that was supposed to recertify me after I connected with the IRS.

Glad to hear it. The one thing I would keep a very close eye on is that if they are making you switch plans make sure that you understand ahead of time whether or not your past payments under the old plan will count as qualifying payments under the new plan. You don’t want them to restart the clock on you.

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They finally decided to recertify my loan under the old plan. It took a lot of phone calls to accomplish this. I also had to upload a PDF copy of the online application. I suspect that making applicarions difficult for students is so discouraging that most people give up. I used to have the teacher-forgiveness plan, but that didn’t work out. I had been misled into believing that my debt would have been forgiven after 10 years of teaching. I taught 21 years.

Can’t believe how they have cheated teachers on this forgiveness scheme. Very disappointing. If you ever need support in your negotiation process, please join us at our Bay Area Zoom headquarters on Wednesday nights at 6pm. It’s really helped me to connect with other debtors on strategy and for emotional support. Contact me at lavishpraise@gmail.com if you want more information.