You are “in default” on your federal student loan if you have not paid in 270 days (approximately nine months). Your wages can be garnished or your tax refunds seized.
How do you stop seizure of your tax refunds?
Tax refund seized
You can request an offset refund, but there are limitations. Here are a few examples:
- You filed for bankruptcy and the case is still open, or the student loan was discharged in bankruptcy.
- You repaid the loan.
- The student loan is not yours – the Social Security number attached is incorrect.
- You are in a repayment agreement with the Department of Education and have started making payments as required.
- You are totally and permanently disabled.
- The loan isn’t enforceable.
If you fit the bill, you’ll need to complete a student loan tax offset hardship refund form and provide proof of your hardship. You also can contact the Treasury Offset Program at 800-304-3107 for more information.
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
In Case You Missed It
Published On: June 29, 2024
From the National Consumer Law Center "NCLC" a toolkit to deal with your student loans, 5/2024 Whether you are just starting your student loan journey or have been dealing with student loan debt for decades, [...]
Published On: September 2, 2023
NEW STUDENT LOAN REPAYMENT PLAN, plus UPDATES (at end of this article) SAVE – “SAVING ON A VALUABLE EDUCATION” “SAVE” – New Student Loan Repayment Plan (8/23) [...]
Published On: July 19, 2023
IMPORTANT PROGRESS FOR STUDENT LOAN BORROWERS WHO HAVE BEEN IN REPAYMENT TWO DECADES OR MORE Posting from the National Consumer Law Center Important Progress for Student Loan Borrowers Reposting from NCLC, July [...]
Published On: April 18, 2022
Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov". The following is an [...]
