If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual’s federal payment or withhold the entire amount to satisfy the debt.
I know that this has probably been answered a million times, but please someone just pat my head and tell me it’ll be okay.
Here’s my situation:
I defaulted on my student loan and got an offset put on my taxes last year. It was all above the board, the IRS notified me and I knew it was coming. They took the whole refund last year which left me with about $2900 left to repay (both balance due and interest).
My refund this year is more than that, somewhere in the neighborhood of a grand. I know they’ll take the remaining balance on my loan, but will they take the rest as well? Also, for any of you heroes out there who’ve paid them off, how long did it take to receive your Default Clearance Letter? I’m trying to adult better these days, and I’m waiting for that one last thing before I can get back into school.
Thanks to anyone/everyone for any input and pats on the head, lol.