Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Virginia residents risk state penalties, as well.
- If you are a health care professional, your license may be suspended or revoked. (See Virginia Code § 54.1-2400.5 and the article Collection of Student Loans: A Critical Examination, p. 252.)
- Your state income tax refund may be seized.
- Your school may withhold your transcripts or other academic records.
To learn about wage garnishment laws and restrictions in Virginia, 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.