Failure to pay back student loans can now lead to arrests by Dept. of Education

Student loans have become the largest consumer debt for Americans outside of mortgages. They passed credit card debt in 2009-2010, and their stigma to consumers is much harsher since they cannot be discharged in bankruptcy.However, this stigma may pale in comparison to a new event taking place, and that is the ability of the Department of Education to issue arrest warrants for people who default on these loans.On June 7th, a S.W.A.T. team broke into the house of a man in Stockton, California looking for the estranged wife of Kenneth Wright. The reason? She was in default of her student loans, and the arrest order was given not by a judge, but by the Federal Department of Education.

Read the rest here: Failure to pay back student loans can now lead to arrests by Dept. of Education – National Finance Examiner | Examiner.com.

In 2009 Obama and the Democrats moved to takeover the student loan business.

The Obama plan calls for the U.S. Department of Education to move from its current 20% share of the student-loan origination market to 80% on July 1, 2010, when private lenders will be barred from making government-guaranteed loans. The remaining 20% of the market that is now completely private will likely shrink further as lenders try to comply with regulations Congress created last year. Starting next summer, taxpayers will have to put up roughly $100 billion per year to lend to students.


In 2010 they did just that, the student loan takeover is part of the national health care plan.

President Obama signed into law the last piece of his mammoth plan to overhaul healthcare Tuesday, and achieved another dramatic and far-reaching change with the very same pen stroke — revamping the way most Americas help pay for a college education.
The healthcare provisions and changes to the loan program for college students were sandwiched into a single piece of legislation — the budget reconciliation bill approved last week by the House and Senate.


Now we have jackbooted thugs kicking in doors at 6:00 am and holding people in custody for failure to make payments on their student loans.
The above story claims that the Dept. of Education issued the warrant. I find that strange and somewhat frighting that a government organization which falls under the executive branch of government has the power to issue warrants… a constitutional power that only the courts can do!

I wonder what other “surprises” we can find in the health care program?

UPDATE: According to new reports it was the Office of the Inspector General (OIG) that performed the raid and not a S.W.A.T team. This doesn’t give me any reassurance as they were armed, placed someone in handcuffs and broke down a door.


About Mr Caps

The guy behind the guy, exposing the tyranny of the Democrat Party and other rants.
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  1. Gerald says:

    Goodbye, Free United States . THe wonderful, fair , free country as we have known it is now taken from us by a government which is now turning this country into a police state. It is pathetic. Vote Obama out of office, if you have any sense.

    • Mr Caps says:

      The story changed, the news is now reporting that it was a fraud case. This doesn’t change the fact that they sent in a team with guns to apprehend an alleged white collar criminal.

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