If you are in default on student loans, will they take it out of your tax refunds?

Answer 1

Yes they will, You can contact Financial Management Services at 1-800-829-1040 to find out who you can contact in order to start making payments on your Student Loan debt to get back on board and maybe avoid this in the future

Answer 2

I to defaulted on a Student Loan and the took it out of my paycheck like a withholding and yes I have had friend that did not get a income tax check because it was being taken because they defaulted. But I am unsure as to what the time frame is inwhich either of these two processes take place

Answer 3

I defaulted on the Canadian Student loan and repayed it over a 3 year period with my tax refund. Of course creditors called and threatened me. I told them the Federal gov' had sent me a letter stating garishing of tax returns, and that I was fine with that. HEHEHE the creditors where not happy to hear me say such things.

Any ways, my loan was only 7,000 dollars, about and it took 3 years to repay with tax refunds.

Answer 4

Yes, I know people this has happened to. Student loans are "Loans" and you have to pay them back. Sad thing is that they can take their money from your Refund Check.

Answer 5

currie,

Yes, eventually, they will.

Sidenote...whatever payment arrangement you make, do NOT give the company access to your checking account, i.e., an electronic "bank draft" to take money out of your account on a monthly basis. I looked up a company for a friend in such a jam, as he was contacted by DCS (Diversified Collection Services), who I guess handles a lot for DOE. DCS has been successfully sued many times and still has outstanding suits against them for not abiding with agreements, taking out too much money, sending two or three drafts a month...you name it.

Just be careful, whomever you deal with.

Answer 6

Yes, they sure will! State and Federal both!