State Penalties for Defaulting On Your Student Loansby Shae Irving
Anyone who defaults on a student loan faces serious consequences, such as:
- wage garnishment
- loss of federal and state income tax returns
- a ruined credit report, and
- in extreme cases, a lawsuit.
In addition, some states their own penalties on residents who default, such as suspension or loss of state professional licenses and seizure of lottery winnings.
For more information, select your state below.