I am in the same situation. I have about 6,000 in student loans from around 2004. They are in defualt and I dont know if I am getting my taxes back this year or not. I got my state check and the IRS site says that my refund is schedualed for deposit on the 6th, but the EDFund website says that they have a claim...what ever that means. I have payments set up for 57.00/mo and some change. They accepted payment arrangments for 120 payments of that directly off my debit card. So if anyone can tell me, does that mean that since they accpeted my payments they are going to lift the claim on my taxes? I am due with third baby in then next three weeks and husband is out of work. We have been making it by the skin of our teeth till now. We really need the money to make it the rest of the way till he gets back to work and checks comming back in later this month.

Thanks for any information!

Edfund wont accept payments of 120 months....you might have have been set up for rehab but your loan wont stay with edfund long term

getting your taxes back depends on when you entered into repayment on the default and the individual guarantor.

$57 also seems low for a $6000 balance but I guess that depends on your interest rate. You had a variable rate loan so you should be at 6.8% so for a 10 year term your payment would be $69.02 according to the calculators.

I have the conformation from EdFund and the statement showing my payments. Mine will be paid off in 1/27/2011. They set have it all on my account with Edfund. The payments are 56 and some change. It said it was a stafford loan. 2 of them actually, combined together. total on both is 6,000 some. The amount of the payment was set by thier calculators...not me. They set it. Why would they set it all up like that and send me comformation of it if they were not going to stick to it as well?

What I am saying is that it wont stay with edfund....it will be transfered. While you are in default and are making payments to edfund , it will report negatively. It sounds like they have set it up for rehab.

I dont care who they sell it to. Just as long as it gets taken care of. lol. I need my tax money. Why would they schedual payments that far out then? That doesnt make any sense. If they were only going to keep it for a set time, then whats the point of entering into a repayment agreement with me for longer term... This whole thing is confusing to me. ish.

when did you enter into repayment?

I finally found on the edfund website to setup payments and update my info this morning. I e-mailed them earlier this week and the person e-mailed me back that all I had to do was go in and update my info and set up payments. My student loans have been sold so many times that everytime I tracked one company down to set up payments it had already been sold to another one. and so on and so on. I am glad that I finally caught up to it. I was getting anoyed with it. lol. I never recived anything stating that my taxes were beeing offset or anything about it at all. The only reason I know that this is going on is that I was looking around for a online college to enrolle in and they said that I still owed student loans and directed me to the national data base, then I found out my loans were with EdFund. Then I was able to handle things with them. Thanks for your input. It is appreciated.

If you just entered repayment, I would be very surprised if you got your taxes back. Edfund was one of our more picky clients when I was collecting.

Well, when they take your taxes, do they take your state too? cause I got my state check like over a week ago. I am so glad that I found somone that I can ask stuff like this. I have been looking for weeks. lol.

As for student loans, if you talk politely with the authorities, they will always waive a certain component of the interest. Take advantage of that. I suggest you then make a few payments without committing to any regular payment schedule in the beginning. Once you have made a few payments like this then perhaps you can go in for a fixed payback pattern.

Bad advise . They will not waive interest unless you are settling the account immediately . When in default, you do not have the option of making a few payments without committing to a payment schedule...when in default your balance is due in full. The guarantors who own these accounts and the CA's that work them want a short term resolution for the account to be paid in full or taken out out of default either by rehab or consolidation.

Thank you for the feedback and for correcting me. Yes you are right actually that this is more applicable in a one time settlement. But I was going by the case of a contact of mine who actually did do it this way by first making a significant payment, then he just kept writing saying that he needed more time and more time.

But thank you very for throwing light on this matter, as the case of this friend is perhaps more a one off than the norm for sure.

ive got a question my student loan just went in default about 6 months ago i only owe about 1300. will they still take my tax refund? all of it?

More than likely. Keep in mind they will have added collection fees and your interest is accruing daily.

My wife has about 20k in stafford loan principal outstanding from 12 years ago. Due to financial circumstances her loans went into default and she hasn't worked in the last 8 years since starting a family. We always intend to one day start paying it back. The question is since she doesn't have any income would she be able to get into a loan rehab. Obviously any payments would be coming from my income but worry that I would become liable for the loans themselves. Can this happen? Any thoughts are much appreciated!

Well that $20k principal will now have acrued and capitalized interest plus collection costs of at least 18% so the balance will be around $40K at least I suspect. You are not liable for the loans but they do affect your family. She can either do rehab or go straight to consolidation which may be the better option depending on your income.