Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. South Carolina residents risk state penalties, as well.  

• State agencies may refuse to employ you. (See South Carolina Code § 59-111-50.)
• Your state income tax refund may be seized.
• Your school may withhold your transcripts or other academic records.

To learn about wage garnishment laws and restrictions in South Carolina, see the Wage Garnishment page at Nolo.com.

For help avoiding default, see What If I Can't Pay My Student Loans?

For information about rehabilitating defaulted loans, see How to Get Out of Student Loan Default.