Can't Pay, Won't Pay - Consequences

This year, the Corinthian 15 launched the first student debt strike in US history. There are more debt strikes on the way. But since our first campaign started with student loans, we want to make sure that everyone is informed that the laws governing such loans are extremely favorable to creditors. For that reason, there are consequences for non-payment. We are listing some of those possible consequences below, though many of you are no doubt already aware of them.

  • Wage garnishment - The government may garnish up to 15% of your disposable pay without first getting a judgment in court, although the Department of Education or a guaranty agency must notify you before the garnishment.

  • Tax return garnishment - For more on this, see Student Loan Borrower Assistance's page on Tax Refund Offsets.

  • Disability garnishment

  • Social Security garnishment

  • Lower credit score - As we write in the Debt Resister's Operations Manual, defaulted loans will appear on your credit history for up to seven years after the default claim is paid, making it difficult for you to obtain an auto loan, mortgage, or even credit cards. A bad credit record can also harm your ability to find a job. The U.S. Department of Education reports defaulted loans to TransUnion, Equifax, and Experian.

If you would like more information about these consequences and how to minimize them, you can read more at myeddebt and in Chapter Four of the Debt Resister's Operations Manual.

You can view a summary of your Federal student loans by logging in to the National Student Loan Database.

HOW TO LOG IN:

1 Go to the NSLDS website (click on "Financial Aid Review").
2 You may have to create a FSA ID if you don't have one.

Once you have logged in, you can download a text file with all of your loan data. If you would like to speak to a Debt Collective volunteer who can help you better understand your data sheet, please email us: support@debtcollective.org.