State Student Loan Collection Follies: Texas AG Paxton collects grand total of $54.12 by garnishing student loan debtor’s bank account; bank gets $600 for its trouble

HOW THE STATE OF TEXAS SQUEEZES A FEW ROCK-BOTTOM DOLLARS FROM STUDENT LOAN DEBTORS Texas Attorney General Ken Paxton presides over a well-oiled litigation machine optimized to extract money from people who have fallen behind on payments on the state-sponsored student loans funded and administered by the Texas Higher Education Coordinating Board (THECB). To be sure, keeping the flow of payments coming is important to the long-time viability of the student loan system if it is to be self-sustaining (as opposed to being supported by general revenue). But consider this: On February 1, 2019, the Attorney General went after one of the wayward student loan borrowers with a writ of garnishment against two banks suspected of holding funds owned by the judgment debtor:One bank was nonsuited, presumably because the ex-student had no account there. The other one, JPMorgan Chase, reported that the customer/judgment debtor had the princely sum of $654.12 sitting in…

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