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If I were to liquidate my 401k, can Sallie Mae take the money?

Orlando, FL |

My student loans are currently in default. I am unemployed. I have no savings. I own nothing of value. All I have is my 401k. I know if I liquidate the 401k, there will be taxes and penalties for early withdraw. Can Sallie Mae take the 401k money? If so, how much? Will they take it all?

Attorney Answers 2


Many of Florida's exemptions are contained in Chapter 222 of the Florida Statutes. When you intermingle exempt property with nonexempt property, you increase the risk that creditors can reach property that was formerly exempt. Seek counsel with your specific factual circumstances before you act.

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