Consequences of Too Much Student Loan Debt

Can there be too much of a good thing? In the case of student loan debt, yes. The Wall Street Journal compiled a list of the potential consequences of taking out too many student loans:

• Inability to rent a home because of high debt-to-income ratio
• Inability to get credit cards or home or car loans
• Delays in buying a car or purchasing a home
• Postponement of marriage and childbirth for financial reasons
• Parents feel pressure to take out loans or otherwise help with payments
• Risk for parents (who co-sign loans) of losing homes, cars and other assets
• Little ability to discharge student loans in bankruptcy
• Having wages garnisheed
• Seizure of tax refund (government loans only)
• Possible loss of state-issued professional licenses
• Being forced to deal with private collection agencies in the event of default
• Having liens placed on bank accounts or property in a default (primarily loans from private lenders)
• Facing collection fees of 25% of amount owed in a default
• No statute of limitation on collection efforts
• Reduction of Social Security payments (government loans only)