i had a pell grant foo school and had to drop out due to work related issues. the school sent me a letter stating that the government was refunded their money, but that i owe them the tuition now, which is fine, and i have started paying them already. my question is, will owing a community college that money hold up my tax refund in any way? can they seize my refund for repayment of the balance since the government has already gotten their money back, or will i get my refund? it is not in collections yet, as i have made payments already.
2006-12-30 04:22:56 · 3 answers · asked by whatzit2ya 1 in Business & Finance ➔ Taxes ➔ United States
If the government has already collected then your tax refund should be clear. If you continue to make payments every month, even if not the full amount then the college will not put you in collections.
2006-12-30 04:27:25 · answer #1 · answered by justcurious 4 · 0⤊ 0⤋
They could IF it was considered a student loan and IF it was in default and the government stepped in and paid off the loan guarantee. This doesn't sound like your situation, however, as the government has been "made whole" by the repayment of the grant by the school. Even if it did apply, as long as you keep up your payments you should be fine.
2006-12-30 05:03:21 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
the only time you dont get a refund is if you owe the IRS money. they only thing the school can do is garnish your wages. The IRS is 100% seperated from the rest of the state governments. Half the time they don't even follow federal law. they try to make up their own ideas.
2007-01-02 15:57:31 · answer #3 · answered by Joe A 2 · 0⤊ 1⤋