05.11.09 | Defaulted Student Loan Consequences (1 of 2)
I’ve fielded many questions from concerned students of late regarding their federal loans and what happens if they default on them.
The questions have ranged from “can they withhold my transcript” to “can they throw me in jail for not paying?” In the first of my two blog series, Defaulted Student Loan Consequences, we shall get to the heart of the matter.
Potential Defaulted Loan Consequences
| Your entire loan balance (principle and interest) may be due in full immediately |
| Your college records may be placed on hold |
| Your account may be turned over to a collection agency and you’ll have to pay additional charges, late fees and collection costs, all of which become part of your debt |
| Your federal and state income tax refunds can be withheld and applied to student loan debt. This is called a tax offset |
| You may not be able to obtain a professional license or get hired by an employer that performs credit checks |
Five most recent student loan help blog posts:
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Filed under: Financial Aid, Student Loans
