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

• You may lose eligibility for your New York professional license.
• 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 New York, 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.