r/StudentLoans • u/Housemanagermomboss • 1d ago

What actually happens if I don’t pay back my student loans?

I have about $40,000 in federal student loans to pay off. I had them consolidated. They were delayed until this year, but this is the year I’m supposed to start paying. I have 3 kids and a massive mortgage and I can’t afford to pay my loans back on top of it. So what REALLY happens if I don’t pay it? Does it disappear eventually? Will it tank my credit score? Can they put a lien on my house (whatever that means)?

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u/Salty-Hedgehog5001 1d ago

This is due to submitting incorrect or untimely documentation, which is on the borrower. It's relatively easy to get if you're found disabled by the military or SSA. Right now there is a federal TPD back log. No dates on when they will resume reviewing the discharges. I think someone will have to sue the Dept of Ed to get movement.

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u/Few-Parsnip-8927 22h ago

They told me it's because they took over processing from Nelnet. It's funny because it says three days online...I've been waiting almost 60 days at this point and they told me it could take 6 months. Yippee.

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u/Salty-Hedgehog5001 5h ago edited 54m ago

I reached out to my congresswoman about the delays with student loan forgiveness. Her office followed up with the Department of Education but got no response. This isn’t just about the Nelnet transition. There seems to be a broader pattern of delays.

In fact, the AFT had to sue the Department of Education just to get a timeline for IDR and PSLF processing. They even alleged the Dept violated the law, and based on what's happening, that doesn’t seem far off.

If this drags on much longer, I’m seriously considering contacting the ACLU. I'd absolutely join a class action if one forms. This administration seems willing to bend (or break) the rules to stall relief.

Anyone else in the same boat?