Can the IRS take your tax return?
2006-12-26 08:59:46 · 12 answers · asked by daisy 1 in Education & Reference ➔ Financial Aid
If you default on a loan, they can garnish your wages or sick a collections agency on you. It is best to make the effort even if you can only pay $20.00 a month at least it shows good faith & that you are trying. Otherwise it is a black mark on your credit history.....
2006-12-26 10:56:44 · answer #1 · answered by More Lies & More Smoke Screens 6 · 0⤊ 0⤋
They put you in jail, debtor's prison.
No, couldn't resist, though. I realize it is a serious situation which a lot of people are finding themselves in today. In most cases, so long as a good faith effort has been made already to pay off some of the loan, arrangements can be made to reduce payments over a longer term. Efforts are underway in Congress for some kind of debt forgiveness for overburdened students. The loan can be converted to a lower rate, long term loan with the approval of the Student Loan program.
There is a kind of debtor's prison that you can find yourself in if you just ignore payment. That is a poor credit rating and inability to get credit that you may need sometime down the road.
I hope you are able to work things out. The IRS does not have anything to do with Student Loans, but your income can be attached by the government just like any entity which holds debt on you. This, I think, is very rarely, if ever, done. The government is more likely to ruin your credit and write it off as bad debt for the rest of the tax paying public to bear.
2006-12-26 18:36:01 · answer #2 · answered by Nightwriter21 4 · 1⤊ 0⤋
When you don't pay back you student loans it does affect your credit. If you are having problems paying back your student loans there are a few things you can do. First, you can consolidate your loans into one. By consolidating your loans you actually lower your monthly payment and lock in a low fixed rate over the life of the loan. Consolidation is free, there is no credit check involved, and it’s a process that takes only a few minutes to complete.
Consolidation offers many more benefits than most people know about. Consolidation offers you an option for forbearance. Forbearance allows you to suspend your payments on you loans for up to 36 months. This 36 month period will give you a better opportunity to get back on you feet. It will also prevent you from lapsing into further delinquency and avoid default.
Once you have consolidated your loans there are several repayment plans that you can choose from. Rather than making the same payment each month over the life of the loan you can choose from several other plans. These repayment plans allow you to lower you monthly payment for up to the first five years.
My name is Monica Steczek and I work with Student Aid Lending. We are a title four lender administered by the Department of Education to help students such as yourself with any questions or concerns relating to student loans. If you have any additional questions, do not hesitate to call me. I will be your personal student aid advisor and will be happy to answer those questions for you. You can also get more information through our website. The number is (800) 964-0642 ext 102 and the website is www.studentaidlending.com.
2006-12-27 14:53:56 · answer #3 · answered by Student Loans 4 · 0⤊ 1⤋
Yes the IRS can garnish your tax return as well as your wages. Only if it is a federal loan though.
One thing to keep in mind is that the government does offer several options for deferment and forbearance's, in which case you can postpone your loans until you can afford them.
Keep in contact with your lender and tell them if you can't pay.
Most student loans are guaranteed by the government, which means they have several ways to make sure they will get their money back.
2006-12-26 17:09:31 · answer #4 · answered by Mrs. Murphy 2 · 1⤊ 0⤋
The IRS isn't linked to your student loans - which is both a good thing and a bad thing.
Good Luck!!!
2006-12-26 17:03:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes they can after a period of time. There are a huge number of refinancing opportunities that will move you out of the student loan and into regular repayment. They can even eliminate a chunk of your debt under certain circumstances.
Check the sallie mae website.
2006-12-26 17:10:01 · answer #6 · answered by epaphras_faith 4 · 0⤊ 0⤋
They can withhold your tax rebate and garnish your wages (15%) They have other nasty tricks also. Start a payment plan, just a couple dollars a week will hld them off. Good Luck
2006-12-26 17:07:55 · answer #7 · answered by BANANA 6 · 0⤊ 0⤋
And guess what else. You cant file bankruptcy against student loans
2006-12-26 23:51:15 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Sometimes yes they can do this. Good luck ever having any credit or anything thoughâ¥
2006-12-26 17:01:47 · answer #9 · answered by ♥USMCwife♥ 5 · 1⤊ 0⤋
you change your name and leave the country
2006-12-26 19:00:46 · answer #10 · answered by Anonymous · 1⤊ 0⤋