State Penalties for Defaulting on Your Student Loans

State Penalties for Defaulting On Your Student Loans

Updated: 2020-10-11 by
The consequences of defaulting on a student loan are serious and long-lasting -- and may depend on where you live. Here is information for your state.

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.