2006-07-14 13:06:48 · 12 answers · asked by Kimberly M 1 in Education & Reference ➔ Financial Aid
It goes into default. Then, any money due to you from the federal government (like tax refunds) is automatically confiscated and sent to your loan holder. Also, failure to pay shows up on your credit report, so if you go to get a car or home loan, you'll have bad credit and will probably be denied the loan.
If you are having trouble paying, apply for a deferrment (if you qualify) or an economic forebearance. There are ways to avoid paying for years that have no bad consequences.
2006-07-14 13:11:14 · answer #1 · answered by Gestalt 6 · 1⤊ 0⤋
The same thing that would happen with any loan you stop paying. It will go on your credit report and you will probably be sued in court for both the balance of the loan and the court costs to file plus attorney fees and interest. When the time comes you want to buy a house you won't be able to until you get your credit back straight. Just pay as you promised to do.
2006-07-14 13:18:23 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
i do not comprehend what the regulation is for faculty scholars in yet another usa. yet once you owe this authorities funds they music and hunt you down and use what ever procedures they can to get their funds. I have a student personal loan-I went by a spell the position i did not have the money to pay it decrease back-nevertheless there as i'm a stay at homestead mom now with health themes. yet, they call countless situations an afternoon-and are rude as rude would properly be. i desire an IRS agent is examining your question and would grant you with a much better answer on the legal statutes.
2016-11-06 09:33:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You go into default, and they come after you. You could end up being ordered to pay everything plus a ton of fees. If you are having problems paying them, you can call for help. You can file for forbearance based on income level. I believe you can do this for up to seven years. Many student loan companies will also make arrangements for you to pay a smaller amount during a forbearance period.
2006-07-14 13:13:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Don't. There was a time I couldn't pay,so I consolidated my loans with William d. ford direct loan lending.If you can't pay with them you can make arrangements on just paying the interest,or stopping the payment until you have enough funds.They are wonderful with working with you.
2006-07-14 15:19:23 · answer #5 · answered by Jenna 3 · 0⤊ 0⤋
your credit history will get destroyed- meaning you will never be able to get a loan again- not for school- not for a car or a house. It's nothing to mess around with.
2006-07-14 13:15:56 · answer #6 · answered by Jess 3 · 0⤊ 0⤋
After reading some of others' answers, i think you should continue to pay and listen to what people are telling you.
2006-07-14 14:27:28 · answer #7 · answered by themysterious 3 · 0⤊ 0⤋
You will get bad credit. I had a friend who did that and for years wasn't able to use her name for certain things. It screwed her up for a while.
2006-07-14 13:11:40 · answer #8 · answered by Sydney 4 · 0⤊ 0⤋
you go into default and that is when the government garnishes your wages, you dont get no other loans from them, your credit rating drops, and you could have the whole thing due at once...
2006-07-14 13:11:22 · answer #9 · answered by sweet_jemise 4 · 0⤊ 0⤋
They will eventually garnish your wages. Students loans are not forgiveable in bankruptcy either. They are however discharged at death.
2006-07-14 13:10:06 · answer #10 · answered by Phillip B 3 · 0⤊ 0⤋