If your loan is a federal student loan (i.e. from FAFSA), then your wages can be garnished by the federal government. They can also attach any federal payment owed to you, such as a tax refund or social security check. If your loan is a private loan, the lender would need to take you to court and thecourt could order wage garnishment. In either case, you'll end up owing more because you will have accrued more interest and penalties, and may also owe court costs and attorneys' fees. And, of course, your credit will be wrecked. A better way to handle it would be to contact the lender and negotiate a payment you can afford.