Student loans are part of life for a lot of college graduates. From time to time, those who still owe thousands to the loan companies will think about what they can do. The one thing that they shouldn’t do is default on the loans.

Things can go downhill quickly for someone who decides to stop paying their student loans and it only gets worse with every month of non payment.

Within the first missed payment, the person’s credit card score will begin to suffer. The first missed payment will negatively affect a credit score if it is reported to one of the three credit companies.

Some of the other negative consequences of walking away from student loan debt:

The account will go into collections. Like any debt, even small ones, companies will always try to find the debtor to get their money from them. Collection agencies are always pushy and it will seem like they stop at nothing to get money out of you. They’re kind of like the loan sharks on TV without the physical threats.

A debtor that walks away from his or her student loan obligations can also be sued. While this practice is more often associated with private lenders versus federal loans, this is still something that happens and it often ends with the debtor’s paycheck being garnished.

A problem that occurs when someone’s credit score takes a hit that has been happening more and more frequently is, while on the hunt for a job, many employers are now checking credit scores of applicants. You can read what I had to say about credit score checking and employment at one of the previous articles I have written here:

Your Credit Score and Job Prospects: Why It Matters

Something very interesting I learned while researching this topic is that some people with very high student loan balances, typically of over $100,000, move to Europe to find employment and escape the student loan debt, as well as any negative action taken by the courts in the United States. This would work stop wage garnishments because if the debtor is paying taxes in whatever country he or she is living in, then the United States cannot take any of that money and court rulings are not valid in a different country anyway. However if he or she decided to return to the United States, there would be a huge mess that would have to be dealt with.

There might look like there is no end in sight when it comes to your student loan debt, but there are a number of reasons not to default on these kinds of loans. Student loans don’t go away when someone files for bankruptcy, they only go away if they are paid off, if the debtor becomes disabled and unable to work, or once the debtor dies.

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