...my 5 year old student loan is in excess of $18k. They just took my tax return for the first time. Why did it take them so long? And one last question, can I get out of default and would it benefit me to do so?
2007-02-20 15:17:25 · 4 answers · asked by Anonymous in Politics & Government ➔ Government
Default of a student loan means that you have failed to pay it back on a regular basis.
It takes a long time because they usually wait about 5 years... but no longer than 7. I think they are letting the interests and fees accrue.
Once you get into garnishment and where they are taking your tax returns, it is difficult to get out of default. You could contact them for payment arrangements but they will require a large chunk of it upfront.
A friend of mine went through this. She told them to go jump. They tried garnishing her wages so she started her own business. They took her tax return one year so she started making sure she owed the gov at the end of the year instead of the opposite. Only problem is that student loans are for life so she puts all the stuff she owns in family member's names.
2007-02-22 09:42:56 · answer #1 · answered by BeachBum 7 · 0⤊ 0⤋
default means its in collections basically. You haven't fulfilled your part of the loan agreement.
As to why it took them so long. well thats the government slow slow and slower.
Yes you can get out of default.
Absolutely it would benefit you to do so because you cannot get out of paying your loan. They will take the money from you whenever you get a tax return, they could garnish wages or even take property if they considered it worthy of doing so.
And its a big negative on your credit.
Call them and talk with the collector. I had this situation due to losing a job and being without work for few months then when I got a job I couldnt afford my bills at first.
I called them and the arrangement was a program they have where you are on a repayment program that if you make ontime payments for 1 year then they take you out of default and remove the negative credit remark.
Then your loan is refinanced and is a regular student loan again.
2007-02-20 16:02:52 · answer #2 · answered by sociald 7 · 0⤊ 0⤋
Default means the non-payment of a tax for the previous year which could be charged to the income derived in the succeeding year.
2007-02-20 15:38:33 · answer #3 · answered by FRAGINAL, JTM 7 · 0⤊ 0⤋
They've got time on their side. They're like pit bulls.
Pay off the debt, and default goes away. If you last that long.
2007-02-20 15:22:30 · answer #4 · answered by ? 6 · 0⤊ 0⤋