Student loan collectors turn graduation to nightmare NKW OKI.I ANS (AH Linda was the first member of her family to graduate from college Thu diplo ma, shu thought. would hu hur lick ut to the American dream: a Iwtter futuru than hi>r purvnts had Along the way, something got lost in the translation Linda has a degree — and a $20,000 student loan to repay She doesn't have a job She does have bill collet tors ( ailing, though. Often. She say* she's willing to pay. but there's one problem "What," she asks, "am I supposed to pay with?" Facing a tight job market, many unemployed college and trade school students across the country are asking that same question as they run into hard-nosed collectors with the monthly bills for their student loans President Clinton has proposed that the federal gov ernment loan money directly to students. He would allow them to pay off the loans after graduation through national service or a payroll deduction. The adminis tration says the change would save $1 billion for stu dents and taxpayers. Hut there ore thousands ol delinquent loans now ■ aught in the system of bonks and middlemen. In the case of Linda, who agr«*ed to tell her story only if her last name was not disclosed, the loan has been turned over to a professional bill collector in California. Covernment-bni ked student loans ore issued by various schools, agencies and financial institutions, often sold to others and wind up in the hands of collection agencies Linda's ogem y has taken a tough stand If you go 90 days without making a payment or arranging an alternate plan, you'll wind up in court The Louisiana attorney general's offu e currently is handling about H.2IK) delinquent accounts valued at over $14 million. ' If we don't collect this money, there won't be any money to loan to other students." said Chrissie Weath erford. collie lions coordinator for the office Figures on M him many loans art! awarded and how many art* in default are virtually impossible to compile bet ause ol the hodgepodge of schools, government agent io«. and hanks involvetl But there are strong indications that the ret ent reces sion has resulted in more defaults The federal education department said it t.ould not draw any such com lusion from its data, but others say there's no doubt hard eco nomit times have driven up the number "The common profile of a defaulter is a person who has dropped out of school and dtx»s not have a job.” said Susan Conner, a spokeswoman for the Indianapolis ttnsed United Student Aitl Funds, a nonprofit group that guarantees some loans in Louisiana and other states. Linda fits half that profile Like many poor students, she had to get financial help Hut instead of the job that would turn her life around, there's !>een nothing hut a steady procession of part-time, low paying positions after long periods of unemploy ment since she graduated about three years ago She still lives at home with her two brothers, both in high school, and her divert ed mother, who makes $50 a week t leaning a house Now. there's the collection agency. It calls regularly. The message, she says, is "pay up now." Because Linda and her family have moved seven times since her par ents divorced three years ago, the agency t ails her 80 year-old grandmother Linda iiosn't given up. At least five resumes go out a week She's been on K>b-hunting trips to Georgia and Cal ifornia "There are so many people trying for a job. There are 50 to 75 people for each |i)b," she said. "You're just a number." The problem is not limited to Louisiana, which has suffered from high unemployment since oil prices i ol lapsed in the 1980s Offit nils in several other states also say the recession has driven up the number of defaults. A 1092 report by the Pennsylvania Higher Education Assistance Agency estimated the rw ession "added about 42 percent to what would have been our 'normal' default volume.*' "I think it's safe to sav enough experts have looked at the figures and come to the conclusion that in California, it's u contributing factor," said Dan Parker of the (iali forma Student Aid Commission Joe Clayton, the spokesman for the Massachusetts Higher Education Assistance Corp., agreed. And although total defaults In New York dropped from $250 million in 1091 to $218 million in 1992. the recession still affected the ability of debtors to repay, said Denyce Duncan, spokeswoman for the state Higher Education Services Corp Louisiana's attorney general is giving defaulters a choice Either make arrangements to pay or go to court. Those who wind up in court face garnishment of wages, automobile seizures and loss of income tax refund che< ks. plus black marks on their credit ratings and the loss of professional licenses issued hy the state. Weatherford said the attorney general's office is will ing to work with debtors, hut that it is up to them to make the initial contact. Those who are sued have either ignored warnings or failed to follow through with repay ment agreements, she said. "We have some people who owe us thousands, but they're only paying $50 a month." Weatherford said. "We know that's all they can pay. You have to be flexi ble." That's what Linda wants to do. "I would pay these people if they would give me a plan that I could afford. I want them to understand that I want to pay the loan." she said. Hut she needs a job. "I know there has to be a way out of this.” she said. "I'm not going to give up." It is a far cry from what she expected. "My parents really believed that if you got a college degree, you'd have it made." she said. "I believed that, too." Clinton’s ‘Summer of Service’ program begins for first 1,500 SAN FRANCISCO (AIM The pay isn't great, hut Alton Man ello expet Is to gut more sut isfm lion helping immunize poor i hildrvn than delivering pizza Mari el lo is one of l.Stltl young men and women going through lx Kit i amp st\ le training tins week for President (Hinton's eight-week "Summer of Ser vile" program. Clinton hopes it eventually will expand into a year-round national lommunity servii.e program, with I CM) times as many partii ipanls "Summer of Servo e" offers .$4 Jri an hour and Si.000 for st hoot to those who w ill help poor t hildren across the coun try. "I could bo earning twice as much delivering pizzas this summer." said Marcello. 20. of l.cis Angeles. who will help immunize < hildren at hospitals in the city s low income, large ly muioritv South Central dis trict. Kut. Marcello added, "(.row ing up. seeing all these people in gangs and going to (ail I'd like to help them, help them lead healthier lives, maybe make a difference Koliert Toilhet said he'll he happv to he paid at all "Volunteer work you just i ail t afford to do it," said Tell het. i‘l. a UtmersilN of Georgia student who will help set up presi hool programs for under privileged t hildren in Atlanta. "I like doing this, hut I'm not made of monov The group, from nine stales gathered at Treasure Island Naval Base in San Krani isco Ba> Cool, gusty winds jostled them as thin spent Monday morning playing games designed to leach teamwork and leadership skills laughter, cheers and applause is hoed around the grassy field Some skipped rope together Others set up an imaginary elm trifled fence and helped each other over it Another team, blindfolded. maneuvered around a mped-off«in It* "The biggest tiling we're try ing to do is build a sense of com munity." said Dionne Brown. 20, of Bellefontaine, Ohio. "We re learning that one person is not always right or not always wrong " This fledgling session is the prototype for Clinton's $7 -t bil lion < omnninity-servu e propos al. which awaits congressional approval. He hopes to have 25,000 people ages 17-25 involved in community service year round by 1't‘l-t anil as many as 150,000 by Most of Clinton’s jobs pro gram was left m shambles when the Senate killed his $10 billion johs-stimulus bill The president is still struggling to get Congress to approve a $900 million pro gram that would include $300 million for summer jobs for youths. Clinton sent Vice President Al Gore to greet the trainees Mon day. "You believe in this country, This country believes in you," Gore said. "Together we are going to build the future of America." Core drew frequent compar isons to other public service pro grams, like the Peace Corps. 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