paansingh, first off, you won't be given loan without proper documents. That means you've either social security  or PR card even if you are flaunting that you are not US citizen yet. I don't konw what do you mean by private loan company but they all work under state law and state protects their rights and services. I'm not sure if that private loan means hand-to-hand cash loans among friends. But if you've dealt with any private business, you'll be screwed up if not now then in future.
-Your credit score will go down the hill.
-You won't be able to open up bank accounts.
-You won't be approved for any loan in the future.
Evading loan is inviting your future of being homelessness in this country. If you are wondering how I know this, because I work in this field . Work with them and pay it off. Your friends circle seems like full of criminal thugs.
I can't imagine myself dying with the thought of still owing someone money.