my default loan

What program did you enter?

It was called allied something i can't think of the name right now. they have me playing $500 by the 25th and $106 every month. If I can't do that then I have to pay $250 every month

Sounds like they set up on a rehab. How much do you owe?

FYI...no downpayment is required for rehab ...they can ask but they cannot demand it. A standard payment for a rehab is 1% of your balance. Under the Higher Education Act you can also qualify for "reasonable and affordable" payments if you cannot afford the standard. Did they do a financial statement??

The CA is Allied Interstate.

I owe $9,345. They did a financial statement with me. Is there a time limit when they start taking your taxes?

$106 is a perfect payment for your balance for rehab.

What do you mean a time limit? Technically as long as you are in default, they can seize your taxes. However for 2008 taxes,the lien list was submitted late last fall. Complete the rehab and you will get your 2009 taxes back.

So I shouldn't file my taxes yet? By timeline I mean is there a certain amount of years your default loans has to be in default before they take it or are there measure they take before they take your taxes?

Nope...as soon as you default they can legally take your taxes. It is a government claim. They usually however wait a year.

SO i should wait to file my taxes?

the lien is already filed. Some guarantors will not remove the lien.

ok! Thank u for the help!

Ok should i pay for the 9 months and then file my taxes or just go ahead and file them and let them take the taxes or whatever they are going to do to it?