Will my tax offset end once my student loans are rehabilitated?
I’m in a program to get my student loans out of default. I currently have to make 5 additional payments on top of my wage garnishments each month. Once that is completed I was told the wage garnishments would automatically cease as the US education department would contact my employer to do so. Would my tax refund offset also end as well? Thanks
If I am doing the student loan rehabilitation program...?
So, I just recently got enrolled in this program where you make 9 monthly payments and you are eligible for financial aid again. I was wondering if because I just started they will still take my 2008 tax refund? I am really hoping not, but couldn't find anywhere on the site when they stopped taking your returns for sure.
If my student loan is rehabilitated, will my tax refund continue to go to my loan or to my choice of payment?
If my student loan is rehabilitated, will my tax refund continue to go to my loan or to my choice of payment?When a defaulted federal student loan is successfully rehabilitated, it is no longer in default. Not only is the default removed from the borrower’s credit history, but collection efforts through administrative wage garnishment and Treasury offset of income tax refunds and Social Security benefit payments will end.Of course, if the borrower defaults again, collection efforts will resume. It may take as much as a year for the wage garnishment to resume and for income tax refunds to be intercepted, but it will happen. But, this time there will be no option for rehabilitation.So, even though the borrower regains his or her income tax refund, it may be better if the borrower voluntarily directs the money at the loan until it is paid off, to avoid redefaulting on the loan. It is also a good idea to set up auto-debit to automatically transfer the payment from the borrower’s bank account to the lender.If the borrower is having trouble affording the monthly payments, then consider using income-driven repayment. This will yield the lowest monthly payment (but, accordingly, is also potentially the most expensive because it stretches out the loan term to 20 or 25 year). The main challenge with income-driven repayment is the annual paperwork requirement.
What happens if I’m not able to pay back my education loan?
The debt collectors assigned by the bank or whoever come after you. They will work with you to resolve the loans. Good luck
How would I find out if my income tax return will be offset this year?
Try calling 1800 304 3107, this is the treasury offset call center. You put in your SS number and they tell you if you have any federal debts.If you go into loan rehabilitation, sometimes they'll "unflag" your social security number. Good luck:)
A student loan has been in default will collection agency still garnish tax return?
Let me get this straight… you don’t care enough about your finances to ensure that you aren’t giving the federal government a tax-free loan (that’s what an income tax refund is), but you can’t be bothered to pay your student loans on time?Your college degree is wasted on you.