As the Government nationalizes more of the economy, the threats become more real. Armed Marshal’s are now collecting on outstanding student loan debt, from decades ago.
- “Aker said he was arrested, shackled and taken to federal court. “ I was told: ‘You owe $1,500.’ I just couldn’t believe it,” he told Fox 26. “I was taken before a judge surrounded by seven marshals.”
Government is more than happy to take over any part of your life that you can’t be bothered to manage on your own. But if you fail to meet the laws, new taxes, rules and regulations that the Government imposes upon you for that service, you better be prepared to pay that price.
Buried in the Obamacare bill was a new law allowing the Government to nationalize the student loan market. I know a lot of people aren’t aware of that, most people never read the bill or the analysis, including most of the people you elected to represent you. Who can be bothered to read anything like that anyway? The Government wrote it. They said it was good for you. That’s good enough, right?
So previously, when you defaulted on a non-recourse loan, the most that would happen to you would be a ding on your credit report. Big deal. Recourse debt that has collateral meant you simply lost the collateral or had your wages garnished. But now that the Government has control, men with guns show up at your door – because that is the only way the Government knows how to solve problems. Government doesn’t have the infrastructure to build collection agencies, and warning letters, and arbitration panels – nor do they care to.
Government is the handyman that shows up to your house to fix all your problems with one tool – a hammer.
A bank will look at $1,500 and write it off because it would cost more to collect on it than to actually collect it. But the government has unlimited resources (The Fed money printing machine (debt on your kids) and your taxable incomes) so spending $10,000 to collect $1,500 is a no-brainer for the Government. Slam dunk!
You voted for them to take over student loans, and men with guns is how they collect. End of story. Simple, cheap (since they don’t pay for it), effective Government solution.
Makes me wonder though, since most mortgage loans are through the FHA now, a Government agency, what happens when you go delinquent on that $450,000 mortgage loan you owe your government? What about when you fail to pay your Government land rent (aka property taxes)?
If you don’t pay your government income taxes on April 15th, they can, and often do, send men with guns, and that is to collect an amount that is far less than what most people would owe on a mortgage. And yet, people want the Government to control more, and more, and more of their daily lives. Well – this is what you get when you do that. Men and guns and jail.
When we had private health insurance, the worst that could happen to 95% of the population for not having it was that you get sick and have to pay out of your own pocket. Maybe go into debt. Big deal. Should have thought ahead and bought insurance. Lesson learned. Now what happens if you can’t or don’t prove to the IRS that you had healthcare coverage with Obamacare each and every year, even if you never used it? Men with guns and jail.
- Total student loan debt currently stands at more than $1.3 trillion and continues to increase at an estimated rate of $2,726.27 every single second. As we’ve reported, according to figures released by the White House, about 27% of student loans are currently not being repaid. Some 7.5 million people with student loans are now severely behind in paying back their debt. In fact, the $1.3 trillion student loan bill ranks as the largest source of consumer debt only behind mortgages. Analysts expect the number to more than double in the next 10 years.
The Government offers assistance though. If you agree to work for the government, they have a very generous loan debt forgiveness program. I guess between a choice of guns, jail, or working for the Government, SIGN ME UP!
Wrapping ourselves in government chains. It’s the new America. And the new America comes with men with guns and jail.
Below is a short white paper explaining the out of control student loan bubble:
Categories: Big Government, College Tuition, Economy, Federal Reserve, Government Failures, Government Tyranny, Guns, Headlines, Healthcare Reform, National Debt, Socialism, Statism, Taxes, The Federal Reserve, Welfare State