Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - What can the government legally do to people who refuse to pay student loans? - I know someone who is currently on disability and has always been on it and never worked and only recieves SSI as income. Basically this person enrolls in and out of college to get the refund and never obtain a degree. They do not have any intention of paying their student loans back and they already have filed bankruptcy in the past and have bad credit. Apparently he does just enough in college to continue receiving financial aid, loans and pell grants and then transfers. I am not upset about what he does and have no malice towards him but at the same time I am wondering what can the federal government do to a person like this. He is also not worried about them taking his social security when he gets old bc he plans on going to a nursing home anyway.

So ultimately my question is how the government gets back all of these loans and financial aid for people who abuse this system. -