Not paying student loan debt drops your credit score and, if left unchecked, could lead to money being taken from your paycheck, bank account, and tax refund. Plus, it can stop you from buying a home.
“What happens if you don’t pay student loans?” The consequences of never paying your federal student loans are greater than if you skip out on your private student loans. The federal government has equipped the Department of Education with extraordinary collection powers that allow it to garnish your wages, Social Security Benefits, and tax refund, including your Earned Income Tax Credit.