What are the consequences of not repaying a student loan?

  • You will be reported to a credit bureau having a negative effect on your credit rating.
  • You can be referred to a collection agency and have to pay collection costs.
  • Your employer may garnish your wages.
  • The Internal Revenue Service may withhold your state and federal income tax returns.
  • The entire unpaid amount of your loan, including interest may become due and payable immediately.
  • You will lose your rights to deferments.
  • You will be ineligible to receive any additional federal or state financial aid.