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Student Loans
I have about $60k in student loans. I only worked a few years after graduation and am now staying home with my 3 kids. I don't see how I can go back to work anytime soon as all my kids are 2 and under and won't be in school anytime soon. We can't afford to pay on my loans with my husband's salary.
They have been on deferment for soooo long.
So what happens if I don't pay them? I know my interest keeps going up and up and up.
I'm not looking for advice telling me to go to work. It is not an option for us at this time.
Thanks
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Re: Student Loans
Assuming these are guaranteed student loans, and not subject to the statute of limitations, the creditors can continue to stack late fees and costs, as well as collection fees, as they either wait or try to collect the money you owe. If they get a judgment against you, they can attempt to garnish joint assets (such as bank accounts) and could conceivably try to pursue real estate or personal property depending upon the laws of your state, the amounts you owe, and how aggressive they choose to be.
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Re: Student Loans
There will also be offsets against any jointly filed tax return refunds. The only way they go away is if you die.
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Re: Student Loans
If these are governmentally guaranteed student loans (or Direct/gov't) AND you were involuntarily separated from employment, the DOE cannot garnish your wages when you do go back to work until you've been employed for at least 12 months continuously. See Fed'l Regulations, Admin Garnishment, sect., 682.410
If these were student loans you incurred before you were married and even if you file joint tax returns, the IRS cannot garnish your husband's tax refund--only your tax refund. If you aren't working and have no interest or dividends taxed and withheld, that would be zero. The IRS, however, will first garnish the refund and then your husband has to file an innocent spouse form to get the refund back, but he will get it back.
If you have joint assets, however, the creditors can garnish those.