Ignoring Student Loans in Texas? Here’s What Will Happen

Student loans: The one-sentence horror story that sends chills down everyone's spines. In Texas, there are certain punishments that are applied if you choose to not pay or consistently pay after due dates.

What Happens if You Ignore Student Loans in Texas?

In this great state of ours, choosing to seek higher education is, in my opinion, a great idea as long as you have some plan of what you'd do with a degree.

The downside of improving your qualifications for future employers is the deep pit of debt that many will incur from going to college. According to Texas Law Help, loans may be a hassle to pay, but ignoring them can result in some pretty nasty stuff, including the following:

• Administrative wage garnishment - taking money automatically from your paychecks
• Lowering your credit score
• Stalling an application for a professional or occupational license
• Stopping your IRS refund
• Receiving a lawsuit from the U.S. Department of Education

When Are Student Loans Dismissed?

Your student loans will be forgiven, whether or not you've made payments, if you are permanently disabled, if you've dropped classes before the refund deadline and your school refused the refund, or if your school shut down while you were enrolled.

If you happen to have a public service job like emergency care, public health, or social services, then you are eligible for student loan dismissal ONLY IF you have been making monthly payments for 120 months as a full-time employee.

Parent PLUS Loans in Texas

Parent PLUS loans are unsubsidized loans made to parents with dependents in colleges or universities.

These loans don't care if you've completed school or not; you need to pay them regardless.

The only way you can have your Parent PLUS loans forgiven are if a parent dies or you become completely disabled.

For more information on applying for student aid, entering payment plans for student loans, and more punishments for failure to pay can be found at the student aid webpage from the U.S. Department of Education.