What happens when you do not pay student loan - CBS46 News

What happens when you do not pay student loan

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ATLANTA (CBS46) -

Student loan payments are not the easiest thing to make. But you end up paying a lot more in the end if you are turning to a blind eye to them. Credit.com says if you do not pay them off, the repercussions can stick with you for years to come…

  • Your credit score will take a hit. Not paying, late payments…all of that negative stuff can be reported up to seven years.
  • Your federal loan will go into default if a payment has not been made for 270 days. The government will be sure to get your money one way or another. As for private loan lenders, they can sue you.
  • You can forget about getting your tax refund. This is one of the ways the government makes sure they get their money. It is no problem for them to intercept your refund.
  • Your wages may be garnished. Get ready for the government to withhold up to 15 percent of your income to pay off that federal loan.
  • You jeopardize the person who co-signed. They are then held responsible for your missed payments and will more than likely have to deal with the same consequences.

 

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