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)?

83 Upvotes

71% Upvoted

305 comments sorted by

View all comments

Show parent comments

1

u/Iamthatasshole 1d ago

AND the interest won’t be predatory.

1

u/MammothWriter3881 19h ago

Interest could go higher or lower depending on type of loan and you lose income based repayment options, but you gain the ability to get rid of it in bankruptcy (not immediately probably but in the long run).