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Federal Student Loan Demand: Pay Up After 30 Years!

Written by Gary North on July 30, 2012

A woman who graduated from college 30 years ago received a letter from the U.S. government. The letter stated that she was in default on a loan she had paid off over a quarter of a century earlier.

She had paid off that loan. Sorry, said the agency. There is no record of this. She still owed the money.

What would you do if you received such a demand? Go to court? You will pay the layer to defend you.

Where would you locate records of receipts from the government?

This woman had kept records. She proved that she had paid off the loan. But it took time for her to locate these records.

The federal government is mainly a gigantic, inefficient bureaucracy. Most things get lost. Today’s bureaucrats cannot locate documents from the past. This is a big advantage for liberty. The inefficiency of the system protects us. But it can bring havoc to someone who becomes the target of some bonehead or vindictive bureaucrat.

In this case, a bureaucrat got involved in a mindless pursuit of an ancient debt. Bureaucracy is mindless. If you get trapped by a bureaucrat who methodically and relentlessly pursues some mindless project, it will take a piece of paper to get out of the trap — or a lawyer.

Her conclusion:

After countless letters, phone calls, and digging through ancient boxes, I was able to produce the information needed to prove that the loan had been paid. But I was really worried for a while. if I had not been able to provide the documentation they needed, I would have been on the hook for another loan. As I calmed down over this near miss, I became angry over what I had learned about student loans. I didn’t like what I saw and became even more committed for my son to graduate college with as little loans as possible. (Translation, none.) The deck felt stacked against students borrowers with the only way to beat the house was to not play.

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8 thoughts on “Federal Student Loan Demand: Pay Up After 30 Years!

  1. And this from the government that wants to run our insurance, lives, and everything else IT thinks it has a right to! Scary, for sure! We should all be scared and registered to vote! This government is a control freak run amuck!

  2. Junk Bin says:

    you take out the loan, you pay it off. no screwing the taxpayer

  3. Western Attorney says:

    She did pay it off, Bunk Bin.

  4. RICK ZIMMERMANN says:

    MY FELLOW AMERICANS: This exact thing has happened to me, and now the Government has taken part of what they say i owe from my wifes Income tax return, when the loan($ 6,000.00) was taken out in 1987 and she came along in 1990,they claim I owe them almost $30,000.00 now and want to penalize her when this loan was paid back in 1987, repeted calls and letters havn't stopped them or even slowed them down they "HAVE NO RECORD OF RE-PAYMENT" And unfortunately I dont have any records saved to prove it.

  5. It's revealing the government is scrounging everywhere — even back 30 years or more — to find the last few coins under the sofa cushions as the US ship of state starts sinking.

  6. I think a very fitting way to characterize "our" so-called federal government is as an "Aggressively parasitic pathocracy". (And Hussein the cipher did not bring the affliction with him when he arrived in town.)

    (Definition: pathocracy (n). A system of government created by a small pathological minority that takes control over a society of normal people.)

  7. Boxerbuddy says:

    I hope you have hired an attorney, sounds like you need one. Good luck.

  8. HOW ABOUT ALL THE LAWYERS WORKING FOR THE FEDERAL GOVERNMENT THAT WENT TO SCHOOL ON STUDENT LOANS YEARS AGO THAT HAVE DEFAULTED ON THEIR LOANS. ARE THEY GOING TO COLLECT ON THOSE LOANS.