State Penalties for Defaulting On Your Student LoansUpdated: 2020-10-11 by Shae Irving
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.