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Consequences of default on private student loan debt in TX

Denton, TX |

I owe $98,621 on private student loans to AES, The payments are $419 a month until August 2010, then they go up to $738 a month. I only have a $9.00 an hour job and it is hard to make the $419 payments i will not be able to afford the higher payments. What would be the consequences in the state of Texas if I defaulted on these loans?

Attorney Answers 1


If these loans are not government guaranteed, then although I am not a Texas-licensed attorney I will say that I have heard Texas doesn't allow wage garnishments or much to be done in terms of seizing assets (particularly homes) with the exception that Texas banks accounts seem particularly vulnerable to levy.

You can bank in another state.

They will trash your credit. They may sue. They would likely win and get a judgment. It would pretty much be wallpaper.

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