Some student-loan borrowers have fled the US to keep from paying their loans, according to a report on CNBC.
One borrower told CNBC he relocated to India after failing to find a well-paying job after college. There, he found the cost of living much cheaper than in Colorado. While there isn’t data surrounding how many borrowers have gone abroad to avoid paying off debt, CNBC observed Facebook groups and Reddit channels where people described fleeing the US over the student-debt crisis.
The federal government can garnish wages and tax refunds for borrowers working in the US but not for those working abroad. The debt does not go away, however, and typically would increase quickly with compound interest and late fees. Borrowers who reenter the US and continue not to make payments could be sued, according to Joshua Cohen, a lawyer specializing in student-loan debt.