IfI owe a studen loan debt and wage assignment has been issued, can my federal tax refund be taken?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

IfI owe a studen loan debt and wage assignment has been issued, can my federal tax refund be taken?

Asked on January 9, 2011 under Bankruptcy Law, Illinois

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Yes, it can.  The government has a great deal of discretion to use against borrowers who have defaulted on their student loan payments.  And when it comes to tax refunds, it can seize your refund directly; it does not have to wait until you deposit it into your bank account.  The IRS can intercept any income tax refund you may be entitled to until your student loans are paid in full.  In fact, this is one of the most popular methods of collecting on defaulted loans.

However, you can challenge a tax refund offset.  To learn more about acceptable reasons to challenge offsets, go to the the National Consumer Law Center's Student Loan Borrower Assistance website at www.studentloanborrowerassistance.org.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption