More specifically, when someone takes out the highest loan amount from the bank that they can & then flees the country in order to not pay it back, what exactly happens in such cases?
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Know a guy who maxed out loans in Finland and moved to Australia. Spent few years there and funny enough, wasn’t able to hold any job there any better than here, so he moved back to Finland and is now paying off the debts from any income he happens to have.
When someone maxes out loans and skips town, it’s like playing hide-and-seek with debt collectors. They’ll chase you like you’re the last piece of pizza at a party. fleeing to avoid repayment isn’t a smart move. It’s like trying to ghost your responsibilities – they’ll haunt you across borders, leaving your credit score in shambles and turning your vacation into a permanent staycation behind bars.
The problem is that you same 18 year-old kids and yes, most of them still have the mindset of a teenager and not that of an adult. if you went to a bank and requested $200,000 loan and you told them you wanted to become a liberal arts major, they would laugh at you in your face and say there’s no way we can value that amount of money for what you will get in return. Loan officers for higher education take that same applicant and ask “you sure you don’t want to make it an even $250,000.00”
Knowing full well that they will never reap the financial benefits compared to the cost of the loan. That should be illegal, we should be telling children in schools that there are other options than $100,000 + college degrees.
We desperately need more trade schools to be presented towards graduating students in our country and not just going to a university that’s going to indoctrinate that student and making them believe they made a logical choice for their future.
Why would you flee? Most countries do not send people to jail for debt problems. There are credit counselling, bankruptcy, and other programs to assist if you find yourself in debt and unable to pay it off. There are even a lot of rules now to prevent the kind of harassment that you used to get. You will still get letters and calls, but not nearly as bad as it once was.
It sucks when you get in over your head, but it’s not something people should feel the need to flee over unless you’ve done something criminal I suppose. People make mistakes, it’s just money.
Nothing happens; international students in American universities do it all the time. Some countries even have laws limiting “foreign” collection attempts.
Nevertheless, and the legality aside, it’s a personal decision whether you want to live with that.
Edit: just because it’s easy to cheat, doesn’t mean you should. Most times the punishment comes from within.
My best friends dad did this. He’s a dual citizen with US/Canada, born in Canada though. Went to school and medical school on student loans in the US, didn’t pay a dime, and hasn’t paid a dime.
He basically just can’t get a loan in the US. Anything with debt on it here is owned by someone else and everyone gets a call once or twice a year asking “do you know (debtor)” and we all have to say we don’t know where he is and blah blah blah, I haven’t seen him in probably 8 years so I’m not covering for him when asked, I truthfully don’t know other than he’s somewhere in Alberta.
He lives primarily in Canada and from what I understand has no issue getting loans there. But when he has had homes down here they’ve been secured against his friends and family members credit, but he always pays them.
I’m sure if the lender knew what he was doing and where they could make the argument to have a judge seize those assets from the straw owners. But he’ll probably go to his grave with that debt and nothing for the lender to take.
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