Show I Bad Checks Bad D Debts j B Bad a d News j J 9 I. I e c 1 4 Points West's West Columnist Taren Green 1 r J j fr i 4 The silliest story I ever heard was told to me by LeNae Williams Coordinator of of Collections at Le LeNae ae works with students who write bad checks and default on loans She once asked J a student who had bounced a check to explain why The student responded C Because I didn't have any money What kind of an excuse is that They dont don't have money but they still write chec checks How can people be so dumb LeNae calls this a stall tactic a scam that no longer works in today's world of speedy dy electronic b banking I have to admit that I too am a time one My tuition check bounce and the whole mess cost over 32 in fines The real mess however is much bigger than just 32 Bad checks and bad loans hurt everyone Heres Here's what I found out BAD NEWS Last year students wrote bad checks totalling about Of that total there is still a unpaid balance If the school cannot collect and Check Rite cannot collect court action will be taken Writing a bad check is against the law Some students from have been arrested REALLY BAD NEWS The situation on loans is even worse Last year loans were defaulted which means could be lost if loans are not repaid It figures out to a 67 percent default default rate A 10 percent default is maximum Above 10 percent and we lose all federal money for loans If you think were we're okay youre you're wrong Next year the maximum rate will wilI be 75 percent and in 89 88 88 55 percent In other words if something isn't done to make students more trustworthy no one will get loans THE WORST NEWS The figures above are terrible but they are for last year yea only The total for all outstanding defaulted loans is That means that students will be turned down for new loans up to I called Attorney General Mark Wainwright who goes to court on loans and asked him what happens He said that unpaid loans i in Utah total more than 20 million dollars He listed for me what happens to students who dont don't pay Before it ever goes to court personal credit records are tarnished Once in court where students always lose then the good stuff starts Collection fees and court costs are added to the loan balance Students lose low interest rates and are subject to the going rate Wages can be garnished up to 25 percent Bank accounts and property can be taken Even state and federal income tax returns can be attached for payment of the debt Too many students think that loans are no big deal Mr Wainwright said that some claim they dont don't realize what they are getting into when they sign the papers He also says that most defaulted loans result from students who move or change schools and dont don't keep in touch with the bank Banks end up sending statements to old addresses and the students dont don't find out until its it's too late How can people be so dumb How can they be so dishonest If you are already in this elite group I recommend that you get out fast Spend only what you have and borrow only what you can pay back Beware the Bad News |