What are the consequences of defaulting on my student loan?
• Adverse credit when the default is reported to all national credit bureaus. This may affect your ability to obtain financing for cars, houses, etc. • Default reported to the Internal Revenue Service, causing Federal and/or state tax refunds to be withheld and applied to the loan balance • Garnishment of your wages • Collection of necessary costs involved with collecting your debt • Assignment of your loan to a collection agency • Loss of other Federal or state payments • Loss of eligibility for further assistance from any Title IV Program, including the Federal Pell Grant, the Federal Supplemental Educational Opportunity Grant, Federal work-study, Academic Competitiveness Grant (ACG), National Science and Mathematics Access to Retain Talent Grant (SMART), Federal Family Education loans, and Perkins loans • Loss of eligibility for repayment options, deferments, and interest benefits as described on the Master Promissory Note (MPN) • Denial of professional licenses (in some states) • L
