It’s important to consider the ramifications of going on a student loan strike.
“I’m not sure we have anyone who’s going to get hurt except the people striking,” said Joshua Cohen, a student loan lawyer based in Vermont. “In order for this strike to really work, everyone would have to be untouchable.”
Before you sign up to join ranks with the Corinthian 15, consider what may very well happen if you default on a federal student loan, either intentionally or otherwise.
The government can send a debt collector after you. It can garnish your wages. If you have no wages, the government can (and most likely will) go after you once you start making money. The delinquencies, default and collection activity will do serious damage to your credit, making it difficult to rent a home, set up utilities and secure affordable rates on car insurance. (You can see how your student loans and any other debts are affecting your credit by getting a free credit report summary on Credit.com.) There also may be a variety of fees associated with these different scenarios, as well as interest that will continue to accrue on the loan, making your overall debt load even greater and more difficult to tackle. Furthermore, federal student loan debt is generally not dischargeable in bankruptcy.
In short: Boycotting your federal student loans could amount to exchanging one financial hardship for another.
Ann Larson, one of the Debt Collective organizers, said she runs through the list of wage garnishment, losing federal benefits, credit damage and everything else associated with default, and then she asks if the person understands the default rehabilitation process, which is a long, difficult undertaking. She said many people she talks to have been in default for years. “This is not something new to them. They are already experiencing the consequences.”