Reply To: Student Loan Offsets 2021 (2020 Tax Year)

[Tiffg]

For those concerned about whether or not student loans would be offset this tax season or not I just wanted to share a part of the email that my husband just received from the US Dept. of Education:

Your current federal student loan flexibilities have been extended. The current 0% interest rate, suspension of payments, and stopped payment collections on federal student loans owned by the Department of Education (ED) will now continue through at least Sept. 30, 2021.

Visit StudentAid.gov/coronavirus regularly for the latest information on these flexibilities and when they are scheduled to end.

Here’s what this means:

• You aren’t required to make payments on ED-owned student loans until at least after Sept. 30, 2021, and no interest will accumulate.

• Collection activities, such as Treasury offsets and wage garnishments, will not resume until at least after Sept. 30, 2021.

• If your loan is in the process of being rehabilitated, you will continue to receive payment credit for each month during the suspension period when you would have otherwise made a payment under the terms of your rehabilitation agreement.

[Tiffg]

@mrsbarkley1030 I second guessed myself immediately and up until yesterday when I did actually receive my refund. We are so used to not trusting the IRS…they came through this time.