Student Loan Question In California
Q: I'm not quite sure where to post this message. But I guess this newsgroup is as good as any to ask a legal question about student loans. I have a friend who is 30 years old. And the last couple of years he has aquired about one hundred twenty five thousand ($125,000) worth of student loans but has no plans to ever pay it back. He went to San Jose State College in San Jose, California. His student loads there came to $25,000. Then recently he spent a year at New York University (N.Y.U.) where he spent $100,000 for schooling, housing and personal stuff. Between these two student loans totals $125,000 Both he and his mom own no property. His mom lives in a rented house and these student loans are both in his name and his moms name. I don't understand how either one of them got loans in this amount. My friend has no means or method to ever pay back a single penny of these two loans. He is very compulsive with his behavior and spent most of it on very foolish personal things. He's bought stereos, TV sets, CD's, two computers, rents expensice cars, travels to London, Englad and/or pays his new girlfriend travel fees. And some of this money actually went to pay for college. He met a girl in a New York bar last year. She was visiting from London, England. So my friend has been to London a half dozen times and has paid to fly her back and forth to see him a few times too. All on his student loans money. Personally, I don't think his student loans are designed to fly girlfriends half way around the world. It angers me that he has blown through a hundred thousand dollars in a year, and none of it, not a single penny was actually his money. As a running joke I ask him how much money he has spent that day and to round it up to the nearest thousands. Now I have a hard time talking to him at all. Recently NYU sent him a check for $1,000 because of a refund or something. Instead of NYU sending it back to his student loans, they send it to him. Within three days every penny was spent on electronic equiptment. I think he bought another DVD player and another TV set. I asked him why he didn't use that $1,000 to help pay for his student loan since it came from that anyway. He got all huffy. On a typical day he will buy a 27 inch color flat screen TV. The next day he'll buy a stereo to go with it. The third day he'll buy a DVD player. The fourth day he is making reservations to fly to London. The fifth day he is concidering buying a $2,000 computer. The seventh day he's bought it. The eighth day he buys a $300 cellular telephone. The nineth day he buys several music CD. A few months later he sells his $2,000 computer because a newer one came out. This one is $2,300. And on and on and on it goes. Today he applied for food stamps. He told me he didn't mention on his application that he's got a bank account with $35 in it and another bank account with $2,000. I asked him where he got the $2,000 from and he said it was part of his student loan. I told him he need to report that on his food stamp application too. The last I heard is that he is going to take that $2,000 out of his bank account and spend it all so he can get food stamps. Is this right? Can he get away with this? I can barley make ends meet and here he is with unlimited spending. This guy has absolutly NO plans of finding work or becoming employeed. He's happy living with his girlfriend England, but lives in northern California. And he's got no plans whatsoever to ever pay back any of these loans. When I bring it up to him he gets an anxiety attack and doesn't want to talk about it. Realistically, what will happen to him? Again he owns no property nor does his mother. Will these student loan people simply keep asking for thier $125,000 and eventually give up? And did my friend successfull blow through all this money and will never be held accountable for it? Thats a lot of money, and he's had a lot of fun spending it all. But what will realistically happen?
A: - Your friend has shot himself in the foot. Sooner or later someone will have his file land on their desk. It usually takes a few years. If he stays in England they probably won't seek extradition. If he stays in the US they will sue him. If he never went to school, and if the investigator is bored and wants something to do then a criminal fraud prosecution is also possible. - I may be wrong, but I am almost positive that for one...student loans can't be paid back. What's going to be funny is your friends future: He will never have good credit, meaning he will NEVER get a house. He will blow through his money and