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Help!!!! They are going to take my taxes for defaulted syudent loans and i really need my taxes to catch up on back rent from being unemployed. Does anyone know where or how i can get help??????

Posted: Fri Feb 02, 2007 9:50 pm Subject:

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.

Posted: Sat Feb 03, 2007 7:51 am Subject:

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

Posted: Sat Feb 03, 2007 10:42 am Subject:

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.

Posted: Sat Feb 03, 2007 11:17 am Subject:

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.

Posted: Sat Feb 03, 2007 11:28 am Subject:

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.

Posted: Sat Feb 03, 2007 11:40 am Subject:

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

Posted: Sat Feb 03, 2007 11:44 am Subject:

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.

Posted: Sat Feb 03, 2007 11:47 am Subject:

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

Posted: Sat Feb 03, 2007 11:53 am Subject:

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.

Posted: Sat Feb 03, 2007 11:59 am Subject:

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. Very Happy

Posted: Wed Feb 07, 2007 8:32 am Subject:

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!

Flow · Posted: Thu Feb 14, 2008 9:53 am Subject: Tax Refunds

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.

Posted: Thu Feb 14, 2008 10:24 am Subject:

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.

Guest · Posted: Thu Feb 14, 2008 11:23 am Subject:

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?

Posted: Thu Feb 14, 2008 11:27 am Subject:

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.

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