What happens if you don't pay your student loan?

Answer 1

If you come back before the statute of limitation runs out on the debt, it could be waiting for you once you arrive on American soil. You could come back to a judgment or a property lien [if applicable]. Now, ten years later, while you may not have to pay the debt, it can still show up on your credit report, if you haven't kept the report current. There is also the possibility of being charged with criminal fraud. If the debt is large, and the creditor chooses they can file charges that the debtor took specific action with the intent to defraud the creditor. It would then be up to a PA to decide if the debtor acted with "sufficiently evil intent" as to form the legal basis for the charge of criminal fraud (stealing by deceit).

Answer 2

Well, Eventually, you will have to report income to some sort of government agency. When you file taxes, they will take what you owe out of your refunds. Not to mention they will be present on your credit report. This can ruin your chances of owning a home, a car, and even obtaining a job (most jobs run a credit check before hiring you, even after you've started). If you escape it longer than that, it will be coming out of your retirement funds when you are old. Just pay what you can when you can, is my advice.

Answer 3

In the US, if you fail to pay your Federally Guaranteed student loans, the loans will eventually become default. Once the loans are in a default status, the Dept. of Ed. will turn them over to a collection agency. The collection agency has the right to garnish your wages, keep your tax return, and of course call you incessantly.

Consolidation of the loans can avoid default by allowing a borrower to receive an income sensitive repayment plan that can fit any budget. You can get help with consolidation by clicking on the link at the bottom of this text box. This is only partially accurate. When the loans go into default, they are referred to a collection agency who will attempt to collect the loans by state and federal law. this will include contacting you by mail and by telephone. They may make one telephone call per day, Monday through Saturday. That is until they are notified in writing to never contact you by telephone again. In this event they may only contact you by phone if there is no other way to notify you of changes in status of the account. Eventually they may attempt to seek legal judgment to facilitate other means of collecting the debt and to extend the period of time the debts may be collected. Depending on the date your initial loans were signed, there may or may not be a specific period allowable for the collection of student loans. Your best bet is to contact an attorney who specializes in debt collection procedures.

Answer 4

You have to give a assurance to the bank before you can get a loan, example your house and share certificate , or your fixed deposits equal to the loan amount or at least half the amount or your insurance papers.Failing to pay back the loan the bank keep the paper and own t he flat.

Answer 5

In the US, if you don't pay your student loans for 270 days, they become default. When they become default, the collection agency will start to garnish your wages and the government will keep all future tax return refunds.

You should consolidate your student loans and prevent the wage garnishment. You can get an income-based repayment plan and pay as little as $0 a month, defending on your income and dependants.

If you want help with the consolidation of your student loans, click on the link below.

Answer 6

The loan company will keep calling you constantly, harassing you, and sending letters of demand. Eventually you will be taken to court.

Answer 7

They can be sued and ordered to pay the debt.