I quit school in May/June 2006, will they get me on my taxes this year for a student loan?

Answer 1

If you defaulted on a student loan guaranteed by the US or state government, your tax refunds can be seized to pay back the debt.

You are generally in default if you don't make a payment or arrangements 90 days after it is due. You first loan payments are usually due 6 months after leaving school. So if you dropped out in June, your first loan payment is due in December. Ninety days later is March.

I think you better file in late January!

Then pay back the money you borrowed, please. Make a payment arrangement you can afford. Paying nothing is not an option. It's a loan; not a gift. You can ruin your credit for years with defaulted student loans.

The WealthBuilder
Tax Specialist

Answer 2

The only way your tax refund would be taken for the student loan is if you default. As the first answer said, the first payment is generally not due until 6 months after you leave school. That makes it unlikely you have gone into default yet. Once you begin making payments, I believe the interest is deductible on your Federal tax return.

Answer 3

Maybe, probably not. But get started making your payments, or having your return grabbed next year will be the least of your problems.