If you said yes, then you are not the only one. Every day, more and more graduates face defaults on their loans, wage or tax garnishment, and certain disaster. There are serious consequences to defaulting on federal loans, and there’s not much anyone can do to stop the government from getting their money. Michael tried, and he failed.
Michael went to a university, obtained his degree, and began his work in the real world, like so many others have done. After receiving a degree in business, Michael raced forward, concocting a business plan for what would be the coolest and most unique bar downtown. The business plan proved a success, and Michael walked away from the bank with yet another loan on his shoulders, this one for the startup of his own business.
Michael worked hard in the coming years. He purchased the property for the bar, designed the interior, bought supplies, and opened the business. For the first couple months, it was a hit. Of course, like all new trends, things began to die down, and soon Michael was barely breaking even, let alone making any profit. According to him, it was much more important to keep the business than to worry about his own personal debt, so Michael took any money he earned and put it towards the business loan, leaving his student loans by the wayside.
It was a lose-lose situation for Michael. Eventually, the time came when Michael’s loan was put to collection agencies, and they weren’t afraid to come knocking. Phone calls harassed him night and day for the money he owed to the government, now to those agencies. When their original tactics didn’t work, the agencies began threatening Michael. If he did not act soon, his tax refund would be garnished, up to 100% of it. It could only get worse. Unfortunately, Michael had never thought to incorporate his business. This left the bar wide open to attack from the collection agencies. On top of the tax garnishment, Michael could lose his bar, his pride and joy, the building he had put hard work and sweat into.
These sorts of threats happen every single day, to thousands of people. It is impossible to live in these conditions. How can you face the day knowing that at any moment, another phone call could be coming, or another chunk of your paycheck is missing, having gone to the government? Michael tried to fight in court, but there was absolutely no winning this case. The government had every right to seize Michael’s assets, and his permission was definitely not necessary. Something has to be done to help people like Michael. When did the government get rights over the people? And when did we lose our right to the pursuit of happiness?