Anyone who defaults on a student loan faces serious consequences, such as wage garnishment, a ruined credit report, and sometimes even a lawsuit. Kentucky residents risk state penalties, as well.
- Your Kentucky professional license may be suspended or revoked. (See Kentucky Revised Statutes § 164.772.)
- Any Kentucky lottery winnings may be seized. (See Kentucky Revised Statutes § 154A.060(h).)
- 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 Kentucky, 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.