Dept. of Education Offset

[Mike C_on_E]

Will have an offset this year due to student loans. Will the DoE offset/intercept my entire refund or just a certain percentage of it? Thanks in advance!

[Lona]

Called the offset line, its not showing an offset for my number, called the lender im doing the repayment thru and she said its still showing active on her end, shes not sure why its showing inactive on the offline. Should I wait til its inactive on their end?

[Lona]

Got on a repayment plan he was able to backdate a payment to count for January, after 5 payments itll go inactive and I should be able to file in may!

[Negasonict]

If you have a hardship you can request all or part of your refund back . Jus do some research there are sites set up to help the doe ha that information as well.

[Sara]

I’ve been paying $0/month for years. Sure, the interest is building but if I’m still poor in 20 years, it all goes away. Meanwhile, I get to keep my tax refunds. But if you prefer to pay it off quickly, letting them take it once a year is not the worst. Not calling them is. They want to help and by law, they have to. You could have consolidated with $0 payments 2 weeks before filing and had your refund. Or take the 9 month rehab for $5/month and never miss a payment. And yes, they take every penny if you’re in default and your listed with the offset line. They should have sent you a letter a few months ago because they have to recertify offset every year. Trust me when I say CALL THEM. I swear it’s not as bad as you think and no, if they take your refund, you cannot get it back unless you file bankruptcy in the next 60 days.

[Rozilyn]

It will take every dime unless you owe them less than your return you should have called the offset number you should have put your loan in deferment when those people call you on the phone don’t hang up on them set up a payment arrangement you can get a payment arrangement as little as $5 a month I know personally

[JustinaCasey]

You don’t have to go through a loan rehab, My taxes had been offset in a prior year due to default. I didn’t know I was in Default on my loan, and everyone kept telling me about this “loan rehab”.. I was just about to do it, and then my cousin told me not. You DO NOT have to go through a “loan rehab” or make any payments right away to get out of default. You can go through Direct Loan and have them all consolidated and get out of default by setting up a reasonable payment arrangement, they don’t require any number of payments before your loan out of default… I know because I did it myself..just my 2 cents.

[Jerrica]

@Lona If you are going to wait to file, then wait until you get that letter saying you are out of default. And make sure to check the offset line before filing, because if it’s showing the offset they will likely take it. They took my refund last year when it said “your refund may or may not offset…” If the offset line isn’t showing a debt, then you’re good. I don’t know, it’s up to you what you want to do. If he’s saying 9 payments to get out of default though, then you won’t get that letter until you’ve made the 9 payments. I’ve heard of people getting the letter before the 9 payments.

[Lona]

The guy told me after 5 payments whatever hold they jave on my taxes will be released, I asked what he meant n he said no wages would be garnished or no taxes would be taken, but 9 payments to get out of default. It’s my intentions to complete the program, just wondering if I can file in July ( June will be 5 months, if I make a July payment before filing thatll be 6)

[Jerrica]

@Lona The IS would only work if it was his debt in your situation. If he worked, then you could file IS and get his portion back. I’m guessing it’s your debt though? Just get your payment planned finished so you can get out of default. Once you make your first payment to your new lender after rehabbing the loan(s), you won’t get your refund taken as long as you are in good standing.

[Alx D]

If you call the Treasury line and if they have an offset on file thy will take it all from your refund. Period. Only way around it is to rehab the loan by making like 5 – 6 monthly payments and get it out of default and then file. I went through this.

[Lona]

I have n I sent in paperwork to do the repayment plan of 5$. I am married but my husband did not work only me, do I’m assuming the injured spouse would not work.

[Jerrica]

@Lona You would need to wait the 5, and wait to receive the letter that says you are out of default. I’ve also read that it’s good to make your first payment with your new lender before filing.
Have you checked the offset line? Married? (Just wondering if you can file Injured Spouse).

[Lona]

The guy I talked to said I had to make 5 payments and itll clear the default, but that I cant file. I’ve read somewhere that you can file if you dont owe taxes. So, can i file my taxes after my first payment or do i need to wait the 5 payments?

[Lorin Dannar]

You would have received a notice that your refund would be offset, after that they keep your refund every year until it pays the loan or you fix the defaults. How much they keep depends on the loan owed. If the loan is more than your refund they keep all of it

This happened to me and I refinanced my loans on the dept of education site. It cleared the default and I’m on an income based plan so I pay nothing and get my refunds.

Let me know if you have more questions I’m on my way to work but could post more detail if needed later

[Ashley]

Hi,

If you set up a payment plan with them and send your first payment it should stop the offset. There is something called an offset bypass for student loans. Search it on google and it will pop up. I ran across the info a few days ago.

[Scott]

They will yt? ake the whole dang return a do it evert year until your pay up or get on a payment plan with them. The only way to get your return back if they take it is with a hardship like your house is in foreclosure or you need that money to save somebody’s life or something like that.

[Jerrica]

@WicK3d Well it’s too late for this tax season, but if you get into a rehab program now, by October you would make your 9th payment. Then you should receive a letter saying you competed the program and you’re out of default. You get transferred to a new lender, make your first payment and you’re good. Best not to file until you’ve made that first payment is what I’ve read/been told.
I had an offset in 2012, they took $1,000 of the refund, and then I didn’t hear anything again until last year when they took the whole refund. Luckily since I don’t work and my husband makes the $, was able to get the entire refund back.
Also, as for the Injured Spouse, you can file that form for previous years (I believe for the past 5 years) and get your spouse’s portion back (as long as your spouse made more than you/their income is the main income. There are states though that do not have Injured Spouse. And then CP States where you can only get a portion of your refund back.

[WicK3d]

K was told u ha e to do that in like October for it to work

[Jerrica]

Mike, if your debt is more than your refund, they will take all of it. They did it to me last year. You can call the Treasury Offset line, 1-800-304-3107. Press 1 for English, 1 for Offsets, then 2. 2 shows my student loan debt. There is an option 1, but didn’t list my offset. You can check both.
If you are married, and your spouse made more than you, it’s possible to get her portion back filing Injured Spouse. If you are in default, call the Dept of Ed, find out who has your loan, set up a payment plan with them. You can do a rehabilitation program, make payments for 9 months and then you’ll get out of default. Then you won’t have to worry about them taking your Refund as long as you compelete the program.

@Carla They will take the remainder of what you owe and release the rest to you as long as your Refund is more than what you owe.

[WicK3d]

2years Ago they took all. But 54$ never heard anything dince

[Carla]

Last year they took my entire refund. This year I only have 78 dollars left that I owe thank God! I am hoping they actually only take the 78 and release the rest.

[Donald]

But if it’s more than your refund they will take it all

[Donald]

There is a number you can call to see the amount that will be taken

[Author]

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