5872 Owens Ave., Suite 200, Carlsbad, CA 92008

The Problem


"And if you don't know the difference between median and mean, your student loans were truly a waste of money."

Student Loans | Patriot Act with Hasan Minhaj | Netflix

The Problem

It’s no surprise that student loan debt has grown out of control with 1 in 4 Americans carrying a balance with no end in sight to this $1.5 trillion problem. After all, a Forbes analysis from this year showed that the average college graduate from the Class of 2017 left school with $28,650 in unpaid federal and private student loans. More than 44 million borrowers also owe their share, with more than 1.3 million owing six figures or more on their loans. After a while, statistics blur into just a bunch of charts and numbers!

However each one of those numbers has a story--a story we hear every day when we talk with borrowers and know first-hand what they go through. And it’s just not a “Millennial problem”…its everyone across the board with oppressive student loan debt, some in their 40’s and 50’s, for themselves, and/or Parent Plus loans for their kids.

Life happens and many people can’t finish school or can't find a job in the career they got their degree in.  Many schools weren’t accredited and shut down or went out of business, and now these people are stuck trying to pay back Federal loans that they took out when they were 19 years old. They are caught up in a never-ending trap that comes back to haunt them. When they go into default, they find they are paying for something they never used. Eventually payments will be forcibly taken from them by IRS tax refund intercept and/or wage garnishment.

Scroll down to read about the Default Trap.

The Default Trap

When people miss 9 monthly loan payments, they go into student loan default. Default borrowers are charged an 18% penalty, thousands of dollars in collection fees are added, and a very damaging rating on their credit reports. The damage to the borrower’s credit results in the same category as that of a bankruptcy and may remain on their credit report for up to 10 years. They cannot qualify for any traditional credit cards, auto loans, mortgages, and they can’t go back to school. Even certain professional licenses and driver's licenses may be suspended until the loans are returned to good standing.

When the IRS intercepts tax refunds (that would have been a much-needed windfall for people struggling to get by), the money is applied to late fees, penalty fees, and interest first. Eventually there is a 15% wage garnishment that is levied against every paycheck.


Single mother Alexis Patterson would not receive her $3,063 tax refund, including her child tax credit. The government would instead apply the money to her past-due student loan account. “The U.S. Department of Treasury ... applied all or part of your payment to delinquent debt that you owe,” it reads.

She and her 11-year-old daughter, Ophelia, have been homeless over the last few months in Portland, Oregon. Her refund, she hoped, would help them secure a place to stay.

Head Office

5872 Owens Ave, Suite 200
Carlsbad, CA 92008


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Helping businesses to help employees get out of student loan default, qualify for Federal Forgiveness programs, and lead happier lives.