The following is a list of the consequences of defaulting on your student loan:
The entire balance of your loan and any interest is considered to be due immediately.
You lose your eligibility for deferment, forbearance, and Income-Driven Repayment Plans.
You are no longer eligible for additional federal student aid.
Your loan account is taken from your loan servicer or lender and assigned to a collection agency.
The Credit Bureaus will be notified and your credit score will take a big hit.
Your federal and state tax refunds may be withheld.
Your total student loan debt will increase due to fees charged during the collection process.
Your wages may be garnished (this means that the government can direct your employer to withhold a certain amount from your paycheck).
The agency that holds your loan can take legal action against you (this may result in your inability to buy or sell assets such as real
The entire balance of your loan and any interest is considered to be due immediately.
You lose your eligibility for deferment, forbearance, and Income-Driven Repayment Plans.
You are no longer eligible for additional federal student aid.
Your loan account is taken from your loan servicer or lender and assigned to a collection agency.
The Credit Bureaus will be notified and your credit score will take a big hit.
Your federal and state tax refunds may be withheld.
Your total student loan debt will increase due to fees charged during the collection process.
Your wages may be garnished (this means that the government can direct your employer to withhold a certain amount from your paycheck).
The agency that holds your loan can take legal action against you (this may result in your inability to buy or sell assets such as real
