What happens to me if I dont pay my student loans?

Question

I have about $100,000 in student loans and I will certainly be unable to make the $800/month payments after I graduate

My question is if I refuse to pay these.... What happens to me??

Peace

Answer 1

It will wreck your credit. There is no way to avoid re-payment. You should talk to your financial aid office and ask for a deferment or for a modified re-payment plan. It's better to work something out & pay what you can.

Many employers do background checks which includes credit history. Your credit history also affects the credit rate charges cards levy on your account and ability to get a mortgage.

Answer 2

Well you can't refuse. Sorry not an option. Jail,garnishment of wages leans and refunds from tax leans. Sounds like a lot of fun. Every thing you own will be theirs and they don't care if you have no car now. So there you have it. But there is HELP now. Right now our government is offering a pay off of student loans. They realize this is a big problem. So start looking for help now. You don't want all those great prizes they will give you for non payment.

Answer 3

If the loan defaults, it will be assigned to the guarantor, usually DOE in your state. Collection will continue until the debt is paid,including any fees. Eventually, the guarantor will contact the IRS and flag your SSN. Any IRS refunds will be gien to the garantor until the debt and collection fees are paid. The student will be unable to obtain any further student loans, even with a co-signer nor qualify for any grants. Student loans are not dischargable in BK. Not to mention, the damage on your credit report, which many employers, banks and insurance companies check before offering a job, opening an account or insuring your home, car or life. In short, DOE will get their money now or later so it would be best to pay it now. Most loans can be made current by contactig the servicer and asking for a deferrment or forebarnce (sp). I worked for SLMA for a few years and believe me, they always got their money.

Answer 4

You can be prosecuted, your wages and tax refunds can be garnished, your credit rating will be zero which means no credit cards, no home mortgage, no car loans.... need any other reasons to pay?

What do you do? Well, first of all consider consolidating your loans (the federal ones can be consolidated at least) for a lower payment and longer repayment term. Yes, this does have other repercussions as far as interest is concerned. Go to your other lenders and discuss your situation with them and see if you can work out something for longer terms and lower payments with them. Do it now, don't wait until you are behind in payments. Most lenders will work with you to make your repayment affordable, but you do have to repay.

Answer 5

First, it will be a negative for your credit score. Next they will proceed by taking any and all income tax refunds that you have coming to you. They could resort to garnishment of your wages when you start working. But- you can always make arrangements to pay less that $800/month, it will just extend your loan period. They have a lot of other things you can do to avoid the negative from happening- like deferment. You'll have to talk to them. Don't avoid the situation. Your last resort would be to stay in school and avoid repayment for a while.

Answer 6

All you have to do is call the place you have your loan through and ask for your loan to be deferred for a year or so. You can also have them lower your payment for a certain period of time. If you simply don't pay they will come after you and get it like everyone else has said.

Answer 7

Your credit will be ruined and most likely your wages garnisheed. Talk to the people and see if you can't make lower payments OR see if a bank will make you a loan for 100 grand with lower interest. They'll probably want collateral of some sort. (usually your firstborn)

Good Luck!

Answer 8

You will pay them eventually because they will take it from you anyway they can. Income tax refunds, wage garnishment. And you cant file bankruptcy on them either. Just pay what you can until it is paid off. You really dont have much option with student loans

Answer 9

you will end up having to pay it back one way or another. If you don't pay they will file a judgement against you. You will not be able to get a loan for a car, house or condo. It will severely impact your credit score and you want be able to get credit and until it is paid of they will garnish your tax returns and possiblly wages and will be filed as a lein against any potential property

Answer 10

THEY WILL COME AND GET YOU AND BEAT THE HELL OUT OF YOU, TAKE ALL YOUR EARTHLY GOODS, INCLUDING YOUR CLOTHES, YOUR CAR, YOUR FURNITURE AND EVERYTHING ELSE.. AND THEN THEY WILL MAKE YOU BECOME A MUSLIM... SUNNI.. I THINK... THEN THEY WILL LOAD YOU ON A SHIP, TAKE YOU OUT TO THE TEN MILE LIMIT THROW YOU OVERBOARD AND TELL YOU TO SWIM TO IRAQ..... now of course if you can;t swim very well and you find yourself in that predicament.. heres what to do.. when they throw you overboard.. take a deep breath sink straight to the bottom and run like hell toward the nearest shore... there is also one other thing you can do.. negotiate with them for a reduced payment.. you can get that done for you if you file for bankruptcy protection.. in other words.. you can work it out.. and hey.. YOU BORROWED THE MONEY SO PAY IT BACK.. they will work with you.. just give them the chance..