College Credit

A squeeze on loan deadbeats

During the past 25 years, millions of students have received Federal Government loans to help defray their college expenses. But 1.5 million of them have since flunked a morality test: they have failed to repay their debts, leaving Uncle Sam holding the bag for $1.8 billion. Last year Education Department officials used a computer search to identify 46,000 federal employees among the defaulters. Result: 5,000 promptly anted up $2.3 million. Now the remaining 41,000 are being told they must pay up in 30 days or their wages will be garnisheed at the rate of 15% per paycheck...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!