If you are expecting a tax refund and you are in default on your student loans, the government will likely intercept the amount owed to you and apply it to your debt. The government has the ability to offset defaulted federal student loans against federal income tax refunds without first obtaining a court order.
The law requires the government to provide you with notice of the proposed tax refund offset. The notice is sent using the best address available, which is often the address used by you in your most recent federal tax return. You must also be given the opportunity to challenge the offset and/or prove that your loan is not in default.
If you are interested in challenging a tax refund offset, our student loan lawyers can help. There are a variety of objections that may be available to you, including:
- You do not owe the amount alleged or your payments have not been properly credited
- Identity theft
- Your loan was discharged in bankruptcy
- Your loan has been canceled
- You qualify for closed school discharge of your loan
- Your school failed to pay an owed refund
It is important to note that the offset may not be delayed until the resolution of your objections, but any amounts collected by the government that exceed the amount you prove to be due will be refunded to you. If you do not have a valid objection and you agree that you owe the debt, we can assist you with a number of repayment options that will avoid future tax refund offsets.
Please keep in mind that every matter is different. If you have questions about your student loan debt and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 516-2566.