Student loan repayment?

My sister in law to be asked me this and I don't know the answer so I thought I'd ask you smart people.

My sister in law to be is a convicted felon (theft charges). She went to beauty school for 5 weeks. She dropped out because she got yet another theft charge and went to jail for about 4 months. Now several years later (4 or 5) they are trying to collect the entire amount from her.

Can they hold her responsible for the entire amount?

Student loan repayment?

If she signed a contract they can collect. If she did not notify them she was not returning to school, they held a space open for her and lost money by not being able to get another paying student to take her place. She can try to appeal to their business manager and may get some of the debt written off.

Student loan repayment?

Yes.... they can (and will) hold her responsible for the entire amount (plus interest and late fees). Being convicted of a felony does not excuse someone from paying off their debts.

If her loan is in default the fees and high interest rates make the total amount owed a great deal higher ... a loan of $1,500 could quickly become a debt of $4,000 or more. Wait 4 or 5 more years and she could owe +10,000 or more.

If she doesn't pay, her wages could be garnished and her income tax return will be confiscated.

Student loan repayment?

Yes.