Wednesday, June 22, 2011

Victory! Dept. of Ed Confirms Student Loan Default Is Not Criminal | Change.org News

Victory! Dept. of Ed Confirms Student Loan Default Is Not Criminal | Change.org News

Victory! Dept. of Ed Confirms Student Loan Default Is Not Criminal

When you saw the news reports last week of a man being SWAT teamed for not paying his student loans, you may have wondered: are they coming for me next?

Well, worry no more. The team from the film Default: The Student Loan Documentary started a petition on Change.orgto end this rampant confusion about whether or not students with outstanding loans could be criminally prosecuted. And they're declaring victory today, as the Department of Education released a statement, saying that defaulting on your school loans is not a criminal offense.

Sara Gast, spokesperson for the Department of Education, made the distinction. Students can be arrested for criminal activity like fraud. But not being able to pay your loans back isn't something you'll be thrown in jail for.

"Generally, defaulting on student loans is not itself a crime," said Gast. "However, there are a number of