The federal government won’t take your home because you owe student loan debt. However, if you default and the U.S. Department of Education cannot garnish your wages, offset your tax refund, or take your Social Security Benefits, it may sue you. If the government gets a judgment against you, then it could put a lien on your assets, including your home.
The easiest way to stop student loans from taking your home is to stay out of default. If you can’t afford the monthly payment your loan servicer is demanding, explore your repayment options. You may be eligible for a repayment plan based on your income and family size. You may also be able to switch to the Extended Repayment Plan, which starts with a lower payment and then increases every two years. And if those payments aren’t affordable, ask for a deferment or forbearance.
If you’ve already defaulted on your federal student loans, get out of default quickly, either by applying for a consolidation loan or entering into the loan rehabilitation program.
Can private student loans take your house? Until you default on private student loans, your house is safe. Private lenders must sue the borrower and get a judgment before putting a lien on a home or taking money from a bank account.