Anyone who defaults on a student loan faces serious consequences, such as:
- wage garnishment
- loss of federal and state income tax returns
- a ruined credit report, and
- in extreme cases, a lawsuit.
Arkansas has one of the the highest student loan default rate in the country but -- unlike many other states -- it doesn't impose state-specific penalties on those who default.
For full details on the consequences of default, see What Happens If I Default on My Student Loans?
For help staying out of 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.