What can happen if you default on student loans?

Question

Situation: What will happen if a person default's on their students loans? For this situation imagine the person in unemployed (so wages can't be garnished), and the person holds no real property (no house, no car, so savings). Other than a negative credit score, what else can happen if payment is not made?

? · Accepted Answer

Nothing will happen, but the debt will grow.  Since student loans are guaranteed by the government, eventually the government will want its money returned.  Therefore, all government benefits will be offset by the outstanding debt until it is paid.

A Hunch · Answer

Most student loans don't EVER disappear... 
You are looking at the short term.  Right now, you are unemployed, but the student loan debt will follow you for 20, 30, 40+ years.

Anonymous · Answer

If you default, they will take you to court and win a judgment for 10 years and in most states, it can be renewed another 10 years. This could prevent you from getting a job because of the default plus you will still be charged add'l interest. Try to get some help from a family member

exactduke · Answer

These loans never go away.  The collections agencies, will lurk till you do get a job & then pounce.  Garnishments, and attachments to bank accounts are likely to follow.

There is no easy way out.

? · Answer

The pain of perpetual poverty. Never getting a decent job or having a happy marriage with that debt load

The Hell With This Constitution · Answer

They will take it out of your tax returns.

? · Answer

uh..........obama will make you, his new : financial advisor.  ;)

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What can happen if you default on student loans?

7 Answers