Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Tennessee residents risk state penalties, as well.
- You may lose your Tennessee professional license. (See Tennessee Code §§ 56-1-312 and 49-5-108(d)(2).)
- Your school may withhold your transcripts or other academic records.
To learn about wage garnishment laws and restrictions in Tennessee, 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.