Unable to pay student loans?

Question

I heard that the government will take you income tax refund if you are in default on your student loans. Is this true? Is it a certain percentage or the entire amount you're due to get back? Help!! I am scared to file my taxes

I don't care if they take my taxes. However I was told that they will garnish my wages b/c my tax information will have my new employer listed. So they garnish wages too?

Answer 1

if you do these, they wont have to take your refunds/wages

DEFAULTED STUDENT LOANS
http://www.ed.gov/offices/OSFAP/DCS/index.html

CONSOLIDATE LOANS
http://www.plusloanconsolidator.com/
http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm
http://www.salliemae.com/content/privateconsolidation/index.html
http://loanconsolidation.ed.gov/

Answer 2

Defaulted or delinquent or both? They are two different things. Did your student loans actually default, meaning they went more than 180 days past due and the guarantor paid a claim to your lender or are they only delinquent? This answer pertains to delinquent not defaulted. Is the consolidation a federal or private student loan. If its federal try contacting your servicer and asking about economic hardship deferment, economic hardship forbearance and temporary hardship forbearance. The first two have criteria to qualify, the last option doesn.t. Ask the representative to explain all of them in detail for you and ask if they can try to determine which you qualify for. If the consolidation is private, it will depend on if you have any forbearance, again contact your servicer to find out. If no forbearances or deferments askg about alternate repayment schedules to reduce the monthly installment amount. Federal and private loans may both have these. If your loan is federal and actually defaulted, you should be able to make a payment arrangemet with the guarantor to try to rehabilitate the loan, usually about 50.00 per month. If the loans are private and defaulted, contact the guarantor and try to work out a payment arrangement.

Answer 3

Have you tried consolidating your student loans into one loan? It can reduce and fix (remain the same) the interest rate. Also instead of making several payments each month for various student loans, you will be making one payment to a single student loan. It can make a huge difference in the bill department. Yes, wage garnishment can happen, too.

Answer 4

The government can and will do that if you are significantly behind on your student loans. Student loans are like morgatge payments...they have to come first, otherwise you are in for a tough time.

However...you have to file taxes, otherwise you can get in trouble for that too! It's a tough situation.