Legal Question in Credit and Debt Law in Illinois

Defaulting on Student Loans

Nearly 1 1/2 yrs. ago I became unemployed during the 6 mos. grace period on my student loans. I have never made a payment on them. I own my condo (100%), but have no other assets. I am still unemployed, and I am now threatened with default on my student loans. Is it possible to have the loan company put a lien on my condo in satisfaction of the loan? The condo is worth twice what my loan amount is. I can't get a home equity loan because I have no income and only want to sell my condo as a last result. If the lien isn't possible, what other options do I have? Please advise.


Asked on 10/18/03, 3:27 am

1 Answer from Attorneys
Mary McDonagh McDonagh-Faherty Law Offices

Re: Defaulting on Student Loans

Not usually, unless your student loans were secured by your property. However, you will not get off paying these loans regardless. They can still sue you personally, get a judgment and withdraw the money from your check when you do start working again.

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Answered on 10/20/03, 5:53 pm


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