Ok, I'm trying to stay out of default on mine and my wife's student loans, but we are looking at a hefty monthly, both of us recently graduate, and neither of us have a job that pays enough. I'm wondering, I know that when you default all sorts of bad credit things happen and they can go after your assets. Well, we don't have any, none. However, I do have a small Roth IRA, can they go after that?

Need more info. Are these private or federal loans?? If federal are they consolidated??

Why would it matter if they are private or federal? They are all federal sub and unsub loans, some with the DOE and some with "private" companies. All have been consolidated, so now there are 3 companies (DOE has some, GCO, and Sallie Mae).

It does matter, because "private" does not mean "with a private company", it means loans that are not guaranteed or insured by the US Government. A Stafford loan is federal, whether it's with Chase, SLM, Nelnet, US Dept of ED, or any other FFEL, Perkins, or FDL entity.

"Private" loans are basically another form of bank-consumer finance and are NOT guaranteed by the Federal government. These types of loans would require a judgment to seize assets, garnish wages, offset tax returns, etc.

They are all Stafford loans, so no "private" ones. So what does this mean then?

If you default: they can garnish 15% of your income, offset tax refunds, and sue you if they think it's worth it.

If you don't want to default: consolidate the loans and get on an income-based repayment plan, or apply for a hardship deferment or forbearance until your finances improve. Good luck!