Non US Student with debt in the US

[LuckyBlackDr]

Hi all.

Thanks a lot for reading this. I came to the US two years ago to do a Master's program. I got a loan from Citi, for US $150,000.

Now with the economic downturn, I'm not able to get a job, and because I'm not a US citizen or permanent resident, I will have to leave the US back to my country if I don't get a job in the next two months.

If I leave the US, it will be impossible for me to repay my loan. My question is, what are the consequences for me of not repaying this loan? As I mentioned, I'm not US citizen, neither resident, and my loan had no collateral or cosigner.

What should I do in order to minimize the consequences of this for me here in the US?


Thanks,

Worried Student

[StartingOver08]

What kind of loan was this?
Was it a student loan? Private Student Loan or Government Student Loan?

[LuckyBlackDr]

It is an entirely private loan. As a non US citizen, I don't have rights to any type of government funded loan (like Perkins and Federal loans).

[lrprn]

Was the original loan from Citi specified as to be used for education costs and fees only? Or was it a loan that didn't have any qualifications?

It used to be fairly easy to leave the US and skip out on debts - citizen or not. Now creditors can chase debtors outside the US with cooperation of the authorities in specific countries abroad through a little-known bk chapter created in 2005 - Chapter 15. To understand how Ch 15 works, here's a good explanation - http://www.uscourts.gov/bankruptcyco...chapter15.html

The key is whether your home country has agreed to cooperate with Ch 15 cases or not. So far Japan, Mexico, Poland, Romania and Spain are cooperating and enabling legislation has been passed in the United Kingdom. Recommendations for the adoption of the Ch 15 law have been made in Australia, Canada and New Zealand, and a number of other countries are currently considering its adoption. Is one of these countries your home country?

[LuckyBlackDr]

This is what I have learned so far by doing research on the web:

1. Private loans are not dischargeable, as long as they were issued to cover Qualified Higher Education Expenses to a qualified institution. In other words, if you used your money to pay tuition and other education related expenses and also went to a "real", well established school, it's not dischargable. This is my case.

2. There is an exception: If repaying makes you go thru "undue hardship". In other words, repaying is no possible for you because would make you very poor, or you're disabled and just can't make enough to pay. This is not my case..

3. You can be sought after in other countries, according to the UNCITRAL (United Nations Commission on International Trade Law) previsions. If your country has signed and created laws implementing this, your creditor could seek legal action in your country of origin. Countries that have signed this include Canada, Australia, UK, New Zealand and others. My country has adhered to the UNCITRAL, but congress has not passed any legislation implementing these regulations.

Any thoughts?

[bksmith12345]

Hi,

Just curious. How does a non-US citizen student get an non-collateralized loan with no cosigner? And 150K at that!

Wow!

[jribe]

i was just wondering what type of schooling did you go through? I would hope it was Med school! For 150k..

This is what I have learned so far by doing research on the web:

1. Private loans are not dischargeable, as long as they were issued to cover Qualified Higher Education Expenses to a qualified institution. In other words, if you used your money to pay tuition and other education related expenses and also went to a "real", well established school, it's not dischargable. This is my case.

2. There is an exception: If repaying makes you go thru "undue hardship". In other words, repaying is no possible for you because would make you very poor, or you're disabled and just can't make enough to pay. This is not my case..

3. You can be sought after in other countries, according to the UNCITRAL (United Nations Commission on International Trade Law) previsions. If your country has signed and created laws implementing this, your creditor could seek legal action in your country of origin. Countries that have signed this include Canada, Australia, UK, New Zealand and others. My country has adhered to the UNCITRAL, but congress has not passed any legislation implementing these regulations.

Any thoughts?

[relief13035]

Hi,

Just curious. How does a non-US citizen student get an non-collateralized loan with no cosigner? And 150K at that!

Wow!

Good question.......my feeling aren't very polite on this issue, so I will stop now.

[LuckyBlackDr]

I went to business school (MBA). For a few top programs in the US, banks had lending policies that included no cosigner and no collateral.

People with MBA degrees from top schools have been doing this for a long time. Usually people in their late 20's, with no family, would repay their loan in less than five years on average.

Off course, all is different right now with the crisis, and not few of us got stuck in the middle, trying to get jobs or having to leave because of visa issues. For people coming from places where salaries are significantly lower, it's just impossible to repay not working in the US.

We're talking about jobs in biotechnology, energy, software, telecommunications, consulting, etc.