If I owe student loans to the government and just opened a small business can they take my business away?

It depends. If the loans are private loans, then the government will not be involved. If the loans are federal loans, then they can issue administrative wage garnishments and tax refund offsets, but they cannot seize bank accounts. If the loans are federal, you should contact the servicer and talk to them about an income based repayment solution. You may be eligible for a payment plan as low as zero. If the loans are private, then all the standard rules of collection apply. They can seize your bank account only if they get a judgment first. There may be defenses to both a lawsuit and a garnishment. You should talk to a local consumer protection lawyer about your circumstances, particularly one who has experience in student loans. You can find one here: http://ow.ly/PiuuS

State laws called exemptions describe the property that is protected from most type of creditors and a link to these laws is below. However, when the government is the creditor, the usual rules often fly out the window. if your business consists of cash in the bank or other easy to dispose of high value assets, it could be vulnerable, particularly if you operate your business as a sole proprietorship or as what the lawyers call an alter ego. Now might be a good time to consult with an attorney to advise you on the proper way to structure your business to avoid as many problems as you can. Hope this perspective helps!

If you have Federal student loans and are in default you could be subject to a wide range of consequences. Including but not limited to administrative wage garnishment, Tax Refund Intercept, Social Security Offset, denial or revocation of security clearance if you are a federal employee, Federal or State licensing can be in jeopardy or a lawsuit. To confirm what kind of student loan you have, go to the National Student Loan Data System. NSLDS.ed.gov . Once you have confirmed the kind of student loan you have and the status of the loan or loans, you can take action to avoid the consequences of default. There are a number of income based repayment plans that can help you get both delinquent loans and/or defaulted loans current and with a payment you can afford.