| Both current university students and former students | | | | it still has access to numerous tools outside of the |
| rarely realize the trouble that they can cause if they | | | | courtroom to exercise its power, including your |
| default on a student loan. Few understand that both | | | | assets, wages and taxes. |
| the federal government and private lenders can take | | | | With private lending institutions, lawsuits are the |
| strict legal action to collect on your defaulted student | | | | primary method for collecting on past due balances. |
| loans. In a nutshell, this means that you can be sued, | | | | They rely heavily on collection agencies, using them |
| taken to court, have a lawsuit filed against you, etc. | | | | as instruments to try and pressure you to pay. |
| Taking legal action against you is their way of forcing | | | | If you have already defaulted on a student loan, in |
| you into repayment, and when this happens, you are | | | | general, it is good practice not to disregard any |
| certain to be required to pay back more than just | | | | potential lawsuits. Preferably, you should enlist the |
| the loan interest and principal, you will most likely | | | | services of a lawyer or obtain some sort of |
| have additional fees like collection fees, legal fees and | | | | professional representation. |
| penalties etc... | | | | The best advice I could give is to try and avoid |
| Although the government is less likely to issue a | | | | taking out student loans if possible. Following this |
| lawsuit in order to collect on a defaulted student loan, | | | | advice can help you avoid a life time of hardship. |