Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

will they income take all the taxes for my studfent loan ?

I had a school loan a while back but because of finical reason I couldn't pay it back. They sent me a letter saying that they will get the money from my taxes but I don't know when I file taxes if I have to take the paper or if they will get a note. I file at H&R Block.

Update:

reply- hopefully if I want to go to school I won't end up going to one of those 6 month to a year corses as you can tell it wasn't a smart move from the beginning but since I file with my family it should be more then enough to pay off the debit of 3.5k

3 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    From all that I have read and heard, I doubt that you will need to do anything. My guess is that there is already a hold placed on any tax refunds you may get.

    Once a student loan goes into "default" status the full balance of the loan becomes due immediately. It also means that other options for delaying payment, including student loan deferment and forbearance, can no longer be used.

    Eventually, unpaid defaulted student loans can have long-term consequences beyond just the loan directly. For example, your credit report will take a hit. Once the loan has been forwarded for collection your wages can be garnished and your federal income tax refunds can be withheld. You also lose your eligibility for other types of federal loans.

    Not the greatest spots to be in, but hopefully once this is behind you, you will not make the same mistake again.

  • Judy
    Lv 7
    1 decade ago

    You don't have to take the paper with you, the IRS just won't send you a refund if you have one coming, it will go to pay toward your loan.

  • 1 decade ago

    any returns you were expecting will be used to pay this loan off until it is satisfied

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