Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Massachusetts residents risk state penalties, as well.
- Your Massachusetts professional license may be suspended or revoked. (See Mass. General Laws Title III, Chapter 30A, Section 13.)
- Your state tax refund may be seized.
- Your school may withhold your transcripts or other academic records.
To learn about wage garnishment laws and restrictions in Massachusetts, 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.