What happens if I default on my college balance?

Answer by  tamarawilhite (17883)

Federal student loans are not bankruptable, and if you do not pay them, the full force of the federal government can collect them, from garnishments to property liens.

Answer by  MikeG (1650)

If you default on your college or student loans, it will be reported to your credit as a D1 derogatory credit reference. They can also pursue a judgment against you resulting in a severe blemish on your credit and depending on your state, a wage garnishment to cover the cost of the default.

Answer by  tessamalk (466)

It's possible that they could garnish your wages--this means they would take money out of your paycheck before the funds reach you. If you don't work, this is of course not possible. In some cases, they may also be able to attach a lien to any property you own.

Answer by  Gribbley (174)

If you default on your student loans you will continue to collect interest on them. Your credit report will look increasingly terrible and you won't be allowed to bargain away your debt like you would with other unsecured debts. Bankruptcy won't clear your student loan originated debt either. It's the wrong kind of debt to bother defaulting on.

Answer by  John (9008)

If you are referring to money owed directly to a college, they will freeze your transcripts and pursue you like any other creditor. If you are talking about student loans, they will trash your credit rating and, eventually, sue you. They can seize your tax refunds and garnish your wages. Worse yet, student loans are not dischargeable in bankruptcy.

Answer by  SubhashChander (1773)

If the college balances are due and if there is a default in the payment of the same, then they have many options against you. They may struck your name, keep hold of your Roll Number, ban your entry into the college, ban your entry into the examination hall, and with-hold your result card.