What are the consequences of defaulting on student loans?

Defaulting on student loans in Washington has serious consequences. The first consequence is the immediate collection of the loan balance. If the loan is a federal loan, Washington state can garnish the borrower’s wages, Social Security benefits, and federal income tax refunds without a court order. If the borrower works for the State of Washington, their salary can also be garnished. Additionally, the state can put a lien on the borrower’s property, meaning that if the borrower attempts to sell their home, a portion of the sale will go towards paying off the loan. Defaulting on student loans can also lead to severe damage to the borrower’s credit score. The entry of a delinquent loan on their credit report can remain for up to seven years and will make it difficult to obtain credit in the future. It could also lead to higher interest rates if the borrower attempts to purchase a car or home. Defaulting on a loan may also lead to legal action. Washington state may take the borrower to court and sue them for the loan’s balance plus court fees. If the court finds in favor of the lender, it may also order garnishment of the borrower’s wages or other forms of repayment, and in some cases, the court may even order the borrower to serve time in jail. In conclusion, defaulting on student loans in Washington can lead to serious financial and legal repercussions. It is important for borrowers to understand the consequences before taking out a loan and to only accept terms that they can financially handle.

What are the consequences of defaulting on student loans?

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