What would happen legally if I stopped making my private student loan payments?

Seeking Advice
1

New York is where I currently reside.

Despite being married, I have nothing registered in my name. Prior to marriage, loans were taken out.

I pay what they want and work full-time, so my balance ($1800/month) keeps growing. My account balance of $160,000 is increasing each month. I took out an 80k loan. That payment leaves me with very little money for groceries because I struggle to make ends meet.

Please advise.

2

If you stop making payments on your private student loans, a few things could happen:

  1. The lender can report you to credit agencies, which will hurt your credit score.
  2. The lender can take you to court to force you to repay the loan. However, they only have a limited time to do this.
2 Likes
3

Eventually, they’ll garnish your paychecks jointly. This was the terrible ordeal that I had to go through. Though it was just a third of my take-home salary, they are allowed to take up to 25%. My wage was cut by barely $700 one day, so I had to work quickly to get a second job to avoid going bankrupt.

Keep things from getting to that stage.

1 Like