# If you purchase land with student loan money will they be able to take the property from you?



## TheWindAndRain

If someone defaults on their student loan debt but they used the student loans to purchase land to live off, is anyone able to come in and take your land from you because of the debt? Are there certain ways to go about this to prevent your land being taken from you?


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## ironman

I think so . misuse of funds . just pay the loan


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## Deleted member 18141

Kyle!!! It's Erin! You gotta talk to @Hillbilly Castro about this he's researched it a bunch!

Also how are you feeling?? Send me a message sometime!


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## ironman

Where does student loan money come from . really is it from private investors. I work through school . but that was long time ago . i also put my kid through college out of my work so she finish her education debt free . i don't like the word loan or credit 
I don't have lot but happy nonone chasing me for debts


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## Deleted member 8978

I would often avoid using student loans to buy anything I can hold a title/warranty deed toward. This includes automobiles and land/house property. Most government officials go after these more than they ever would toward a raccoon for all I know. I did use my student loans to pay a dentist to fix my teeth and fit in a set of dentures. Now I'm maxed out on mine and I have to see how much of it I'm able to repay to start off with.

The most important part of it is paying it back as much as you can. If you paid enough, some student loan providers could qualify you for lower payments, if not, forgiveness. If you're still in college, you can file deferment with any student loan provider that is asking for repayment due.


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## wokofshame

Well they can't tell that you specifically used that money to buy the land. For all they know, it could have been your paper route.
Student loan debt is different legally then regular debt. It falls in the same category as child support and debt to a govt agency such as the IRS or welfare benefits that you got overpaid and the agency is now trying to recoup.
The following will likely happen after a number of years:

- any wages you receive can be garnished
-any bank accounts you have can be garnished
-any tax returns, any Social Security, SSDI, or SSI payments can be garnished to repay said debt
-you don't need to be sued and have a judgement made against you in order for the garnishment to begin, all they need to do is send a notice to the address they have on file for you

One way you can avoid wage garnishment is to use a false SS# when you fill out your W-4 at a job (and an address not matching the one they have, either). Then the govt probably won't be able to find your income. There are a thousand others with your slave name. 
Banks are supposed to require your SS card to open an account, but I've successfully opened them before in small towns without showing one.

Have you thought about building a credit record, acquiring every credit card you can, maybe a personal loan or two, and then maxing out all the credit cards, taking out as many payday loans as you can all at once, and cashing all that out?
For any of the above to happen with regular debtors, they have to first sue you (quite likely not to happen). Also, unlike student loan debt, you can discharge these debts in bankruptcy.

Check out this rather disturbing article- in order to avoid a possible lien far down the road, do you have someone that you trust with your life, whose name you could put the property in?


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## Hillbilly Castro

Remarkably inaccurate answers from a lot of folks here. Doing this is possible. I've never done it "(and won't)" but you could easily get on Income Based Repayment if you make less than $10,000 legally - it's best if you make zero. Then your payment will be adjusted to $0/mo and forgiven in 25 years. It is treated as taxable income, when the forgiveness comes, so simply anticipate that tax bill when it comes or else take your money out of the US. 

That's another thing, any debt can be taken out of the US and the only way for it to be recovered is if debt collectors employ very expensive international skip tracers. They are generally not going to do this for small cases, and if they do, they'll look for a paper trail, taxes, some proof you exist. Which, how we live, there would be nearly no record of in many nations. 

Further, in terms of property ownership in the US and likely some places overseas, if you do not own your land but a company does, a company that is yours, they must take issue legally with the company - not you - to go after it. So start an LLC and run a tiny little ebay business or something small and totally legitimate, and have the property be business-owned. Then proceed to squat on your company's land. This is a precaution in case they find that you had no intent to repay the loan when you took it out - which is a violation of your Master Promissory Note and totally illegal. If they can demonstrate that intent, they've got you, so be fucking careful. Or leave the US, which is always an excellent option in any scenario.


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## Matt Derrick

just for reference, i have a ton of credit card debt and student loans that i defaulted on nearly ten years ago. i haven't had any garnishment of wages whatsoever and i don't even get phone calls about it anymore. i think it helps that i never make more than 10k a year, which puts me well below the poverty line, but who knows.


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## LeeenPocket

I also have a ton of student loan debt from ten years ago that I defaulted on. No wage garnishment because I don't make any wages. They don't call me anymore because I NEVER answered the calls. And the ones I had through Chase were discharged. So I don't have to pay it back but I do have to claim it as taxable income. So I have to pay like $14 for taxes this year. I think I can swing it. 

Anyway, I guess it would depend on which college you're telling the lender that you're attending. Both my private and Federal loans went straight to Penn State to pay my tuition and fees, and I got the leftover. Depending on what I originally borrowed it was a couple thousand bucks. UNTIL...my last two years they changed the whole system and now the maximum you can borrow is what the school deems you will need for housing, books, food, tuition, and whatever. It didn't give me too much to work with and I don't think it would be enough to buy land.


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## Deleted member 8978

I just came across this and I don't know how real or how true it is, but many rumors circulated that most loan-related credit reports were disputed using only two words: NO CONTRACT.

https://www.creditkarma.com/questio...a-3rd-party-when-i-have-no-contract-with-them

Sometimes many erroneous entries on any credit report can also play a huge role in whether or not you're able to get a new loan or even save your property/home, but it's worth a try.


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## Pervert Pirate

I wonder if you would be ahead to make a deal with an older widow/widower of a small Farm to lease the land for paying the annual taxes on it. You may even declare you are going to grow certain crops on it so the Government will pay you not to. In the meanwhile You may buy a Van/or Class C RV to put on that land to live out of. Then buy straw bales to stack up all around the vehicle and cover it in plastic tarps to water proof it. 

Like so:












Thus it could look like a bunch of stored hay for farm use. The RV may be a cheap buy that needs work before going on the road, Yet it could serve ok as a Tiny Home this stealthy way. The land would be declared as Agricultural use. Then if you have a second vehicle, a membership to a Gym
(Like Planet Fitness) you would have a place to clean up as well as many other services. Then locate a laundromat and you have about everything you need. If you want to live like this. If you were to work a job in the trades you could pay off the student loans for education etc rather quickly. If you only take a class at a College you could use the Gym there to clean up and the campus wifi etc. 

I know people who have done something like this. But setting up a Van like this would be a temporary Tiny House.


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## Goldenvoid

Just sell it to someone you trust/love for a dollar and work it out till your off the dept screen


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## Matt Derrick

thomaspeket said:


> I searched for information and I can say that they have no right to take the land, because they don't know what you spent the student loan on.


yes, but assuming you didn't incorporate the land somehow, it still falls under seize-able assets in the event they come after you.


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## AutumnAlexander

You need a student loan to pay for your studies. I think it is very stupid to buy land with this money.


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