possible, because of this new program promising a reset. He lived with that fear for years, until recently, when the impossible math of repaying his loans seemed suddenly. "Almost every month, coming around to payday time, I was so worried I was going to see the wrong figure on my check, on my direct deposit," Moreno says. Though Moreno never had his wages garnished, he knew it could happen. Any tax refunds, like the EITC, which is incredibly important for low-income people, can be garnished." If they're receiving Social Security, that can be garnished. "Consequences that ripple throughout people's lives," says Jackson of The Education Trust. The Student Loan Restart Education Department punishes student loan servicer for billing mistakes Moreno stopped paying his federal loans, and eventually they fell into default. "It may sound irresponsible, but I had heard other people saying the same thing: 'I just can't do it, so I'm not doing it.' And it was terrifying to. After the Great Recession, they lost their home and, in late 2011, filed for bankruptcy. Moreno didn't want to default on his student loans, but his family was in crisis. We need to have health care." But after paying for those priorities, he says, there simply wasn't enough money left over to pay his monthly federal student loan bill. ![]() We need to have four walls," he remembers thinking. Juan Carlos Moreno remembers the impossible math of his own default in 2015. Americans with incomes below twice the federal poverty line account for 65% of defaulted borrowers according to the Institute for College Access & Success. The common denominator, though, is poverty. It may sound irresponsible, but I had heard other people saying the same thing: 'I just can't do it, so I'm not doing it.' And it was terrifying to.
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