The U.S. used to send debtors to prison, but that practice stopped in the late 19th century. Some states have laws that technically allow people to go to jail in connection with unpaid debt. However, you probably won't go to jail for failing to pay student loans unless you took them out illegally.
Identification
Whether or not you can go to jail for unpaid student laws depends on the laws of your state. The U.S. has few laws that result in jail time for unpaid debt -- failing to pay child support is a common cause for someone going to jail over unpaid debt. A few states, such as Minnesota, require defendants in a court case to sign papers agreeing to a wage garnishment, according to Liz Weston of MSN Money Central. Failing to sign garnishment papers can result in jail. This means your lenders would have to pursue a judgment first for this to happen.
Fraud
Taking out student loans in another person's name is a felony, and you could go to jail. Student loans work the same way as any other loan, so the person committing fraud does not have to use it to pay tuition or college expenses. Student loan fraud is not relegated to a few isolated cases, especially during the height of the credit boom in private student loans in the '00s, according to U.S. News and World Report.
Considerations
Threatening to pursue a criminal case usually does not work in the creditor's favor. If you are in jail, you probably have a much harder time paying back your student loans. While a few stories of borrowers going to jail for unpaid debt may make a splash in newspaper headlines, this is highly unusual in 2011.
Tip
The Fair Debt Collection Practices act specifically outlaws debt collectors from threatening jail time for unpaid debt, according to Federal Trade Commission. The debt collector also cannot harass you or make any other untrue threats. If a creditor does threaten jail time, you should file a complaint with the FTC, and you have the right to sue the creditor in state or federal court. As of 2011, if the creditor loses the case, it must pay you the greater of $1,000 or actual damages.
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