How to Prevent Losing Your Tax Refund Due to Student Loan Debt

The deadline to file taxes – April 15 – is right around the corner, and many people are looking forward to putting their tax refunds towards a vacation, down payment, renovation or debt. However, that may not be the case for some student loan borrowers, who may not receive a refund at all. Nearly half of all working Americans hold some student loan debt, and those that are behind on their student loan payments risk losing their tax refunds. If you rely on your tax refund to get ahead on bills or to have some breathing room in your finances, this could be a scary thought, but it’s true. If you have defaulted on a federal student loan, or have not made a payment or an attempt to pay in 270 days, the government can collect those funds, plus interest, through tax garnishment, also known as tax refund offset.

Are you at risk? Your refund may be seized, in part or entirely, if:

  • If you are unable to catch up with your defaulted student loan monthly payments,  you can look into a program with My Education Solutions to pay as low as $49 a month and receive your full tax refund.
  • You’ve filed an unsuccessful wage garnishment appeal. There are a number of reasons garnishment could be appealed or disputed, making payment arrangements, or an eligible financial hardship.

If these reasons don’t apply to you, you might be sighing in relief and already mentally planning how you’ll spend that sweet moolah. But, if you have looming student loan debt and are struggling to make payments, or are even a couple of weeks or months behind, you may want to keep reading!

Don’t risk losing your refund or other federal wages due to garnishment in the future. The only surefire ways to avoid losing is to pay your loan payments on time or pay the loan in full, but when debt is staggering, and you’re already drowning in your monthly payments, these don’t seem like the simplest solutions. Here are a few things you can do today to ensure your hard-earned income isn’t affected tomorrow.

  • Call the IRS and discuss your options. Tell them the steps you’re taking to pay back the debt, or ask them about qualifying deferments, for example, financial hardship due to income. You can also call the Treasury Offset Program directly at 1-800-304-3107 to determine your next steps if you fear you’re at risk for garnishment.
  • Pay your student loan debt once and for all. Did you know federal student loans no longer have a statute of limitations, so it could be decades before you get any relief? It doesn’t have to be that way. My Education Solutions offers true loan forgiveness and peace of mind so you can significantly lower your monthly payments, get above water again, and ultimately pay your loan off for good.

We know the thought of hiding under a rock and hoping your student loan debt will just disappear seems appealing, but unfortunately, it’s not going anywhere. You don’t have to let your student loan debt hang over your head any longer because there’s a solution.

Contact My Education Solutions at 1-800-618-1170 to talk to a local expert about your options, or visit www.myedusolutions.com and use the Student Loan Forgiveness Calculator to see if you qualify and estimate your savings in a few easy steps. Use Promo Code: Social7 to receive $50 off their one-time enrollment fee.

 

Sources:

https://fiscal.treasury.gov/top/

https://www.debt.com/edu/student-loan-wage-tax-garnishment/