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

• Your Iowa professional license may be suspended or revoked.
• Your state tax refund may be seized.
• You will lose eligibility for Iowa student aid programs.
• Your school may withhold your transcripts or other academic records.

To learn about wage garnishment laws and restrictions in Iowa, 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.