Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Alabama residents risk state penalties, as well.
- You may lose your Alabama professional license.
- A lien may be placed on property you own in the state.
For more details and information, contact KHEAA, the guarantee agency that handles student loan defaults in Alabama.
To learn about wage garnishment laws and restrictions in Alabama, see the Wage Garnishment page at Nolo.com.
For full details on the consequences of default, see What Happens If I Default on My Student Loans?
For help staying out of 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.