In an interesting piece from Money Magazine, they profile two students who have left the country to avoid paying student loans. Here is one student's story:

"Carl (who doesn't want his last name used) stopped making his $450 monthly payments after his family incurred some unexpected medical expenses, and his $55,000 private loans went into default. That's when the phone calls from debt collectors started, and Carl decided not to come back. "It was made clear that if I ever came home, I'm screwed," says Carl."

He now lives abroad and has no plans to return anytime soon. If loan companies found out he was back in the states, he could be summoned to court, or worse. Our resident guru, Mark Kantrowitz, provides advice in the same column about avoiding exile:

"There's a mythology that private student loans can't be discharged. But sometimes they can and should," says Kantrowitz. To get your student loans discharged, you must file an undue hardship petition."

The approval of these petitions depend on a variety of factors. First, you must be able to pay off your loan and also take in enough income to have a decent standard of living. Next, your situation (i.e. not being able to pay) needs to last for a significant portion of the repaying period. Lastly, you must have taken good faith efforts to pay off your loans. After all these steps, you can get part or all of your loans forgiven. That said, however, only half of these petitions are usually approved.

Leaving the country is a tremendous risk for you and your family. Once you leave, you can't come back. Your problem will remain here as long as you do nothing about it. It's better to tackle your problems at home and bear the burden rather than ignoring the problem abroad. It's a choice those of us with high debt loads face. How's Paris for the rest of my life?

Here is some advice for those who are considering private loans:

1. Exhaust all public loan options. Public loans are preferred because they have fixed interest rates and flexible payment options. FinAid.org offers examples of different types of public loans offered.

2. If you do apply for a private loan, stick with big banks. You will rest easier knowing your loan is coming from an established institution with a good reputation. Bankrate allows you to compare your different options and pick loans with the lowest rates and best payment plans.

3. If it sounds too good to be true, it usually is. Like with anything, always read the fine print (and if a free iPod is involved, be extra studious). It¿s also best to approach your financial aid office for recommendations before heading out on your own.

A survey commissioned by CollegeGrad.com shows that most (37% to be exact) college students expect to take a decade or more to pay off their student loan debt. As a result, the pressure to find a well-paying job after graduation has grown greatly. The problem facing most students is that salaries have not kept up with rising tuition costs and students find themselves being unable to pay their loans even with average paying jobs.

In time, it will become clear to loan companies that these grads cannot pay back their debts alone. Even now, loan companies are seeing increases of defaults on student loans. In 10 years time, this could be the next credit crisis.