PammyCast

This is amazing.

Overlooked part of the NY Times article on student loan debt. The State Department has an initiative that is STILL ACTIVE to bring foreign students to elite universities in the USA. They receive full scholarships. They pay nothing but a tax bill. They come, major in Spanish, and then flee abroad to avoid paying: "For Enrique Zúñiga, debt wasn’t on his mind when he began his studies. He received a full scholarship to Princeton and was grateful to avoid having student debt — until he received a $16,000 tax bill. Mr. Zúñiga, 25, comes from a working-class family in Tiltil, Chile. In his final year of high school, EducationUSA, a State Department initiative to recruit international students to the United States, came to his class and handed him pamphlets for Princeton, where he applied to study chemistry and later switched to majoring in Spanish and Portuguese. Mr. Zúñiga was living in university accommodations while dishwashing part time, with his scholarship covering both his tuition and his living expenses. But Mr. Zúñiga didn’t realize that all funding exceeding his academic costs represented “nonqualified” funding, meaning that it was taxable. Princeton states on its website that most nonacademic funding (including for international students) is taxable, but Mr. Zúñiga did not recall being told this. When he received his first tax bill from the university at the beginning of his second year of studies, he panicked. “I walked into the financial aid office, and I told them: ‘I don’t have this money, so what do I do? I need to enroll in my classes,’” he recalled. Princeton offered him a private loan to cover the tax bill. Mr. Zúñiga had hoped to stay in the United States after graduating and find a good job with his Ivy League degree. With these plans in mind, he took on additional private loans to cover his tax bills until graduation. TICAS has advocated for all scholarship funding to be nontaxable to prevent students from taking on tax-related debts. However, Ms. Zampini said she had never seen a situation like Mr. Zúñiga’s, where the university provided loans to cover the taxes. The student newspaper has also published an opinion article highlighting the issue. In July 2022, Mr. Zúñiga graduated with $16,736 in loans to Princeton. He received letters and emails demanding payment almost immediately. After months of unemployment and couch-surfing, Mr. Zúñiga found work as a legal assistant and interpreter at a legal charity in Philadelphia, but he was still unable to afford payments. By November 2023, Mr. Zúñiga had paid back less than $1,500, and loan servicers began demanding he make more payments. He was then offered a job in Shanghai as a college admissions counselor. “I thought to myself: ‘Well, they can’t enforce any judgments against my debts. I might as well go,’” he said. Before moving to China, he tried to negotiate with the loan servicers, but he said they were unwilling to budge. Even in Shanghai, a Chinese loan recovery organization began contacting Mr. Zúñiga almost daily throughout 2024, urging him to pay his debt to Princeton. “I was depressed,” he said, describing a cycle of receiving daily phone calls and blocking numbers. Today, Mr. Zúñiga still receives emails about his debt, which has grown to $28,196.13, but he has no plans to pay it back.