Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Montana residents risk state penalties, as well.
- Your Montana drivers' license may be suspended (Montana is the only state we know of that imposes this punishment)
- Your state tax refund may be seized.
- Your school may withhold your transcripts or other academic records.
To learn about wage garnishment laws and restrictions in Montana, see the Wage Garnishment page at Nolo.com.
For help avoiding default, see What If I Can't Pay My Student Loans?
For information about rehabilitating defaulted loans, see How to Get Out of Student Loan Default.