What are the consequences of defaulting on my student loans?

Defaulting on student loans in Wisconsin can have serious consequences. Nonpayment of student loans is considered a legal debt and if the student goes into default, the loan holder or their representative can take legal action against the borrower. This can include taking money from the borrower’s wages, tax refunds, and other means of repayment. The loan holder can also report the borrower to the three major credit bureaus. This can lead to bankruptcy, a lower credit score, and other difficulties taking out loans in the future. The borrower can also be charged extra fees and penalties on the amount owed. Additionally, the borrower may also have difficulty obtaining employment as most employers check credit reports when hiring. Additionally, defaulting on student loans can result in the suspension of some professional licenses and certification programs. Student loan debt collectors also may take legal action to collect the debt by garnishing wages and filing a court order. As you can see, it is best to avoid defaulting on your student loans.

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What are the consequences of defaulting on my student loans?

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