Taking my taxes for defaulted student Loans

I would call the IRS ASAP and explain that them grabbing your refund would cause a hardship. I would also call the Dept of Education first, as they are the ones who are actually taking it. Once they tell the IRS to lift the order (if they do), you should get your refund.

I am sorry to say....the IRS is not going to give you your tax refund when you owe for a student loan.

Who are you referring to as "they" ?

Is it the Dept of Education or a collection agency? I wonder if allied interstate is again in the picture in your case.

Even if Allied is in the picture, they can still take the refund. I doubt calling the IRS or the company will get the refund issued to you.

There are no collection agencies involved when the college loans are in default. The agency that gave the loan out has the irs flag the account of the person resposible for the loan and that is that. You loan gets paid. It is too late now to get this to stop. I know it happened to me two years in a row until I found out that I needed to contact Direct Loans and ask for a deferment BEFORE the first of January.

When my student loan went into default they did go to a CA, and it was Allied.

Oh - maybe it depends on who you have your loans through, I just figured that they all went through Direct Loans like mine did. They are affiliated with the federal gov. and they are very easy to work with.

All of my loans were Federal loans, I know one of them was with Sallie Mae I forget the other one.

I don't know which is worse counting on and then loosing a refund or dealing with a ca! I know what the lost refund means. They got their 10k back fast and I had to change my spending plans. I still have about 3500 left, but the payments are manageable and will be suspended until after my bk discharge.

That's good to hear irish. My student loans were included in my chpt.13 plan, they were garnishing my check at first until I filed. They only garnished 3 paychecks though. $3500 balance isn't too bad. :D

collection agencies are most definately involved when student loans go into default. Federally insured loans are never sold to CA's....they are assigned to CA's by the guarantor. The department of ed has at least a dozen CA vendors and most FFELP lenders have several CA's working for them. It is the guarantor that files the lien with the IRS. In some cases a letter is sent out warning of impending offset.

In order to stop IRS offset, you need to take care of the loan. Consolidate it, rehab it...get back into repayment. It is too late now for your 2006 return but for future years, get that loan into repayment!

I thought a tax refund was a supplement to your income, so why can an agency take 100% but they can't garnish your wages 100%. This only puts the working poor into more of a hardship.

Tax refunds are not to supplement your income...well maybe the earned income credit. However those with loans in default are given ample opportunity to avoid the offset.

From what I heard, the tax credit they just sign into law due in May will also be seized, based on 2007 liens.

I spent 2007 rehabbing my student loan. I got the letter last week it has been successful and that it would be sold this month. I was told the negatives would be removed from my credit report and that I would receive a new payment amount. Do I understand that they will still be able to take my tax return, I haven't filed yet, even though my rehab is successful?

You should be good to go since you were in repayment for most of 2007.

Keep in mind that not all the negatives will go away. Only the negatives reported by your guarantor will change.....the lender/servicer's negatives will remain.

when you say lender/servicer's, MOHELA owned my loans I defaulted in 2000... ASA out of Boston has had them since 2003 and now in 2008, I understand sold they go back to Mohela.... Has the lender/servicer's been reporting all that time? One more quick question, my loans aren't consolidated, there are seven in total each have small differences in interest rates, is it better to consolidate or just leave them like they are?

Consolidation would give you only a single payment to keep track of. It may also reduce your payment by spreading repayment over a longer period.

I thought you couldn't put a Student Loan on a Bankruptcy..on either one? I have a Student Loan right now...and it's 'current'. It was in default for, about, 8 months..some years ago. It's a big loan. Maybe you can call the place, where you have the loan and work out something, to 'start your loan over..where it is current. I would like to know how your 'updates' are, please.

When you file BK you must list all debts including student loans. They are technically included in the BK and the lenders are subject to the BK court stay of relief. However when the discharge of the BK is completed, the student loan being a non dischargable debt, becomes active again.

My student loan is with a collection agency. I've been making the payments for the past five months.My loan will be out of default in October. Will my money from the stilulus go towards my student loan?

If your tax returned was seized, your stimulus payment will be too.

SLM is not GOD. I have a defaulted loan with them I refuse to pay due the fact it was mishandled from the beginning and papers and signatures were forged.

I am sueing one of the CA's right now and WILL win.

They passed it on to a new collection agency who I am going to sue and win.

SLM tells lots of lie about your rights, the simple and easy thing to do is investigate the truth and don't take what they say at face value. The best thing you can do is if you are defaulted and have one of their collection agencies calling you get a lawyer that handles fair debt collection. Many of them do not charge you a cent.

A student loan much like any other debt comes of your credit report in seven years (they will tell you that it is on there forever in most cases) and that is against the law they are breaking the fair debt collection laws.

In some states you can record these scums when they call in some you can't your attorney will let you know. Either way ask questions when they call and write down the responses you get with the name of the agent and his extension.

Ask things like

When will this come off of my credit report if i don't or can't pay it?

How do I know you work for SLM can you send me proof that I am suppose to pay you and not them?

Can you send me information about the interest applied to this account along with any other extra fees?

But in the end the best thing you can do to stop these scumbags is get an attorney as I said you can and should sue them.

Also report them to the FTC.

I was threatened with taxes being taken and it never happened. I have no job only my wife does. They claimed they could garnish her wages despite the fact she is not on the loan (they can't).

Hang in there and don't give up!

Any other questions email me email removed

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Hey, you all truely helped soo much to answer alot of the questions I have, but I still am stumped. I defaulted, well I am 3 months behind on 2 loans, sallie may & chase, I filled taxes and havent recieved a federal, when I should have. Can you tell me if there is anyway to fix this at the stage that I have come to be at? PLEASE! Thanks for your time!

Are these private or federal loans?

Being behind on federal loans wont cause tax offset. You have to actually be in default

my taxes were offset and i'm unemployed and haven't been deemed disabled yet who can I write to find out what I can do Hardship is already my situation. HELP!!!! ME. I haven't worked so now what do I do?

Can they do this if It the person has economic hard ship and is on ss.

Lesia...obviously your default preceeded your unemployment so yes they can seize them. You have had ample opportunity to do something about it before now since most lenders send out notices the previous august. Both of the above posters...you should have been in contact with your lender or the CA handling these months ago. You both could have consolidasted with Direct Loans under the income contingent repayment plan and you wouldnt be worrying about tax refunds now.

i just completed my consolidation app and they state they my loans are in cert and tey contacted my lenders and are waiting for a response my loans are in default if my loans are approved for consolidation could i still have a chance of receiving my tax return because i have not filed yet

hi guys. does any body know if they will take your federal refund if your wage is being garnish but you are in the rehabilitataion program.. please help

It is possible....if you are in default, they can take it. Call 1-800-304-3107

Really? Im a single mom..who got my A.S Degree in MA, and I was told id be set..UGHH no! HAHAH im working now as a Educator with Autism children but need my refund..BAD! PERSONAL INFORMATION REMOVED[EMAIL="advice..Sarahliza82@yahoo.com"][/EMAIL]

A two year certificate program (sorry but an associates is not a degree anywhere else in the world) is not going to get you far. If you were not in repayment and in default, you wont be getting your refund.

wow really the loan company i have wouldnt let me have a deferment they told me i had to pay 600 dollars to get my loans out of default

Private or federal?

Generally once you default, the only way to get it out of default is to rehab, consolidate or pay in full. You must not have defaulted yet.

hey they took my taxes. it was a loan i did not even know about. I am unemployed and living with my mother. I have four chidlren. i get 320 in unemployement a week, someone help me please what should i do.

How could you not know about it? You obviously did a FAFSA and signed a prom note. It paid for part of your education. You would have received numerous calls and letters warning you were past due or about to default....then scads of letters after you default.