What happens if I default on my student loans from the Missouri Higher Education Loan Authority?

If you default on your student loans from the Missouri Higher Education Loan Authority (MOHELA), serious consequences may follow. MOHELA has the authority to report your default to credit bureaus, which will significantly harm your credit score and make it difficult to obtain future loans or mortgages. In addition to affecting your credit, MOHELA may also utilize various debt collection methods to recoup the outstanding amount. These methods may include wage garnishment, where a portion of your wages may be withheld, tax refund interception, and even legal action. Moreover, defaulting on your student loans can lead to the loss of certain privileges, like the ability to apply for deferment or forbearance. It is crucial to contact MOHELA immediately if you are struggling to make payments to explore alternative options to avoid default.