CONSEQUENCES OF DEFAULT
Your credit rating and ability to borrow any loans will be seriously damaged.
You may lose future eligibility for financial aid and/or student loans.
You may be sued and court costs and legal fees will be added to what you owe.
Your Federal Income Tax refund may be withheld.
Your professional license renewal for certain occupations may be denied.
Your employer may withhold part of the salary for payment of your loan.
Your assets may be taken away from you.
Once a loan is declared in default, you are no longer entitled to any deferments or forbearances.