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So I took out a student Stafford Loan a few years ago with the University Of Phoenix Online. I dropped out after less then a year and never received a bill. Now I go on my credit report and the loan company filed a claim with the Government. Am I safe to assume that they will take it out fo income tax now? What rights do I have and can I correct this so this won't happen?

Posted: Thu Oct 25, 2007 12:00 pm Subject:

First of all, all debts must be properly validated. Meaning before a judgement can be sought, the consumer (you) must be sent a validation of debt, and a chance to remedy the situation. If what you say is complete, then you never were granted a legal validation of the (alledged) debt or were given a timeframe to pay back the money. You should find out which agency of the government is handling this, and plead your case. 1. Never received validation of said debt. 2. Was never given any recourse to repay the said debt. This may buy you some time to figure out a workable solution. Just remember, student or education loans never reach a statute of limitations, as most debts do have an expiration date to them.

Posted: Thu Oct 25, 2007 1:56 pm Subject:

Validating a student loan is often seen as a stall by the agencies that are handling the loan. Yes, validating is a legal requirement but students can easily track their own student loans via http://www.studentclearinghouse.org/ or by calling 1-800-4FEDAID. At best it will buy you a week to 10 days while they pull a copy of your prom note.

Borrowers are expected to pay their student loans even if they do not receive a bill. Defenses of Laches not a valid defense either..from the DOE site...
Defense of Laches (Unreasonable and harmful delay in demanding payment)

Because default on a publicly-financed debt, such as student loan or grant obligation, harms the taxpayer, Federal law precludes the debtor from avoiding repayment by claiming that the debt should not be enforced because of delays in demanding its repayment. Moreover, where the debt is a student loan, the borrower has agreed in the note to apprise the holder of the loan of his or her current address. Thus, a claim that the debt, or interest owed on the debt, should not be enforceable because of delays in demanding payment is also barred because the borrower, not the lender or the Department, was legally obligated to notify the holder of his or her correct address.

If you wish to avoid having your taxes seized and your wages garnished (they do not need a court order for admin wage garnishment) you need to contact the guarantey agency listed on your report now. Loans are certified for tax offset based on lack of payments and right now is the period that the lists are compiled for the different agencies. They are usually submitted to the IRS early December.

Posted: Thu Oct 25, 2007 9:15 pm Subject:

Yeah...what she said. Very Happy

Posted: Thu Oct 25, 2007 9:57 pm Subject:

I think this guest is Breakthecycle who posted another thread on here.

Posted: Fri Oct 26, 2007 1:14 pm Subject:

I see that alot here. Someone will post the same stories with different threads or names. Odd.

Posted: Sat Oct 27, 2007 10:25 am Subject:

I did that by accident actually. My computer was freezing up and this site logs you out after being inactive for a period of time and I forget.

Posted: Sat Oct 27, 2007 2:16 pm Subject:

All is forgiven. Very Happy

Merci · Posted: Thu Jul 31, 2008 2:47 pm Subject: Proposed Tax Offset

We just received a notice of proposed offset. I was told that in order to delay the offset we could request a review and an opportunity to see the documents within 60 days. Please advise.

Posted: Thu Jul 31, 2008 7:23 pm Subject:

was this offset for 2007? if so, you are way too late. 2008 offsets dont get submitted until about thanksgiving.

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Student Loan co. filed a claim with the govt.

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