What Happens When Student Loans Aren’t Paid Back?



Student loans are choking an entire generation of Americans. For decades, people were encouraged to prioritize higher education, and one of the most effective arrangements was the relatively easy process of getting a loan to pay tuition and living expenses while you earned your degree. So, what happens if you just stop making payments and go live your life? How long will student loans be a part of your life? The short answer: forever……until you’re dead…..and in some cases, AFTER you’re dead (if someone else co-signed for you). Let’s say you’re willing to take the hit to your credit report and you’re not concerned about the government hounding you for the money. Keep in mind that your loans will follow you until you discharge them through a forgiveness program or pay them off. Collection agencies may harass you to pay them off, and if they fail, the federal government may step in to try to collect, and that can be very unpleasant. They can seize your tax refunds and garnish your pay, and there’s not much you can do to stop them. Federal student loans will also follow you through retirement. You can walk away from your student loans, but not without consequences. So, basically, the old saying ".......but in this world nothing can be said to be certain, except death and taxes" might have to be revised to include student loans, because the government will keep trying.