Student Loans: L.A. Teacher Has Wages Seized 30 Years Later As Government Targets Individuals Who Defaulted →
Those who default on their student loans are at risk of having their bank accounts drained and wages garnished — more than 30 years after the fact, according to a Bloomberg report.
Such was the situation that confronted 58-year-old Linda Brice, a first grade teacher in Los Angeles who defaulted on $3,100 she had borrowed more than three decades ago to pay for college.
Goldsmith & Hull, a law firm representing the federal government, withdrew $2,496 from her bank account and seized a quarter of her wages, which amounted to more than $900 a month. This was after the chief federal judge in Los Angeles sided with Brice, ruling that she should pay only $25 a month due to her financial state.