If you default on your student loan, it will have serious consequences. The guarantee agency will purchase your defaulted loan and will report your defaulted loan to the national credit reporting agencies affecting your ability to
obtain future credit. Other possible consequences of defaulting on your student loan include:
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demand for immediate payment, in full, of all student loans |
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loss of eligibility for future student financial aid or repayment options |
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garnishment of wages |
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application of Federal and State income tax refunds and lottery winnings directly towards repayment of your loan |
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referral to a collection agency. You will be responsible for paying the collection costs |
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you may be sued for the outstanding balance of your loan(s) resulting in a judgment against you |
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disruption of student financial aid eligibility for future students at your school, |
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no renewal of professional licenses. |
