My best friend is currently getting her wages garnished from a student loan. She is about to file her taxes, but isn't sure she is going to receive any money back because she still owes. Will they just continue to garnish her wages or will they take what she still owes out of her refund?
2007-01-30 05:40:32 · 9 answers · asked by Femme Fatale 2 in Business & Finance ➔ Taxes ➔ United States
The only reason she is having her wages garnished is because she is way overdue on payments. Yes, her refund will be garnished and the wage garnishment will continue until she either sets up a payment plan and sticks with it or the loans are paid off.
I've been paying on my student loans since 2000 and have never had any problems with wage garnishment nor receiving IRS refunds, both of my loans are federal student loans. As long as you are making payments on time your wages won't be garnished and you'll receive your IRS refunds. You might suggest to your friend that she do what I did and get her student loans consolidated in order to lower her payments and interest rate. Consolidation might also give her chance to get her payments back on track and bring the garnishment to an end. My consolidation was done through Sallie Mae. http://www.salliemae.com
2007-01-30 07:57:03 · answer #1 · answered by ModelFlyerChick 6 · 0⤊ 1⤋
If she owes for a student loan, she will not get a refund. Take it from me because I just paid off my student loan 6 years ago and because I owed them for quite sometime, every-time I filed my taxes I never received a refund. The IRS always took it. But now I'm all paid off and started receiving my tax refunds 6 years ago. Therefore, tell your friend not to even expect anything from the IRS so that she won't be disappointed in the long run.
2007-01-30 13:51:07 · answer #2 · answered by Anonymous · 1⤊ 0⤋
I am thinking that the only way that they will take her refund is if the company that has the garnishment against her is a state or federal branch, I know that I have had me refund taken only one time and that was because I owed the city money on a water bill, I would say that if they don't take her refund that she should give it to them so that they can get the garnishment paid off faster,
2007-01-30 13:46:29 · answer #3 · answered by randyssgirl25 2 · 0⤊ 1⤋
They may very well take her refund, and if she still owes the garnishment may continue as well.
2007-01-30 13:46:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes they can take her refund and then if that is not enough they will continue to take from her check. She may want to call them and try to set up a payment plan. This way she can tell them what she can afford to give to them and not have to worry about other bills or expenses.
2007-01-30 13:47:38 · answer #5 · answered by New Job Mayne! 4 · 2⤊ 0⤋
Yes
2007-01-30 13:59:37 · answer #6 · answered by Diamond in the Rough 6 · 0⤊ 0⤋
Yes they could take it since student loans are federally insured
2007-01-30 13:44:32 · answer #7 · answered by golferwhoworks 7 · 0⤊ 0⤋
Yes they will take it. Best bet is let them and try to get the loans paid off.
2007-01-30 13:49:04 · answer #8 · answered by logan 5 · 0⤊ 1⤋
All of the above, until it's paid off.
2007-01-30 14:13:38 · answer #9 · answered by Judy 7 · 0⤊ 1⤋