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[quote=Anonymous][quote=Anonymous]What do you mean by "federral loan."  Student loans are guaranteed by the feds but the actual loan comes from a bank, which turns the loan proceeds over to the school.  The school has no dog in this fight and the bank can't "lien" DH's degree.  You can't get blood from a stone anyway - offer to pay the money back, as agreed.  No one has any other recourse.[/quote]

Actually in a way they can "lien" the degree.  In my niece's case (Legal American), she owed federal loans and other loans to the college.  Actually, an astronomical amount.  She was allowed to go through the college graduation ceremony but she was not given her degree and not allowed to say she had an A.B. until she paid up on the college loan.  She thought that unfair but I thought it made sense in that once the kid is gone, the college will have a nightmare trying to get its money out of the student who could have skipped the state.  The college also wanted to get its money first in line because she owed the feds and owed credit card debt.  So no money, no degree.

She now owes the feds $60K in student loans, $20K on her credit card and $20K to her parents.  No W-2.  No job.  She will have to declare bankruptcy at 23, but, from what I've read here, federal loans are not discharged via bankruptcy so I don't know what she is going to do . . . [/quote]

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