I am an international student who defaulted on US student loans - Will I be sued?

Posted by Living-Earth3274@reddit | studentloandefaulters | View on Reddit | 12 comments

I am an international student with +$150k in student loans in default (long story) and my university has sent a collections agency after me. The loan is a promissory note from the university, so the collections agency is collecting on their behalf, and the loan hasn't been sold to anyone. Since they have my home country address they have an affiliated local debt collector in my home country chasing after me over email (though I now live in a third country).

I'm wondering if anyone knows what the chances are of my university suing me in the US (I have no idea how I would be able to defend myself when I have no US address to receive mail, and live halfway across the world), then having the collections agency take that judgement, re-litigate it in the local courts of the country where I now live, and then obtain a local judgement to collect on my debt here?

It's an Ivy League-level school so I'm afraid since they have billions of dollars they don't care about spending the time/money to go through all these steps to chase down the debt internationally.

The collection agency they've sent says they work on international debt collection, which is why I'm afraid they'll jump through all the hoops to sue me internationally. https://cedarfinancial.com/international-debt-collection/#countries

Pretty convoluted but hoping some of the people who have heard stories of folks evading debts abroad might be able to speak to this.

Also: I do not live in the US anymore and do not intend to ever move there in the future.

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AutomaticFeeling5324@reddit

You are home free. I wouldn't worry about it, you don't have asset here in the U.S. and you don't have credit to worry about. Be happy and considered your education a free one!

aFrothyMix@reddit

get strapped. practice. let them FAFO.

Additional-Ad-9088@reddit

Unlikely, the cost of recovery would make that a vendetta rather than a collection effort -

Living-Earth3274@reddit (OP)

I guess the school would just outsource it all to the collections agency right? The agency would get paid if they sue me for money.

You are living outside of the USA? The cost of a lawsuit to collect would far outweigh the benefit of collecting the amount owed. many foreign countries will not enforce or allow these types of lawsuits to collect. Collection agencies mean little when you are outside of the USA

Yes, I live in the UK now. I've researched it and they would need to obtain a judgement in the US, then take that to the UK and sue again in a court here to get another judgement to collect here.

I'm just scared cause they've contracted this firm that says they specialize in international debt collection - so the company clearly has resources/capabilities to go cross border

https://cedarfinancial.com/international-debt-collection/#countries

Check the statute of limitations, jurisdiction, contest everything, make the collections prove their case and validity of the debt. But the costs make collection in court unlikely but not impossible

LHorner1867@reddit

Since it's a lot of money I guess it's possible, but I've never heard of someone being sued in a foreign country for US debt.

RickMuffy@reddit

My only guess is since it is affiliated with the school, they can possibly take back the degree? Not sure what other details are there, but some schools won't give you the degree if you owe them, but usually loans come from outside institutions.

How would that work though, there's no way they could force you to mail back the diploma? I've also never had a job where they contacted my college to see if I actually graduated from there.

I worked for a fortune 100 company that verified my degree, but that was the first and last time. If I wanted to get a masters, I'm sure that would be checked again.

Fair - I've gone to grad school and I swear I only had to upload a copy of my official college transcript. Though I assume if you have 150K+ in debt you're not thinking of grad school haha.