In a regular tax season, if you have federal student loans in default, your tax refund can be used to help make up for what you owe on your loan. This doesn’t apply to private student loan borrowers, whose tax refunds cannot be garnished if their private loans are in default.

When does the Department of Education take your tax refund?

First, some background: If you are in default on your federal student loans (which by definition means you are behind by 270 days or more), the Department of Education can take your tax refund …

What happens when I pay my student loan balance?

At this stage, the IRS might also come after your tax refund. If it does, you’ll receive a refund offset notice in the mail in advance of the proposed refund garnishment. If you pay your student loan balance before the IRS issues your tax refund, your refund won’t be garnished. What Happens When Student Loans Take My Tax Refund?

Can a private student loan be garnished for tax refund?

Private student loans in default aren’t eligible for tax refund garnishment. If your tax refund is subject to garnishment, you’ll receive a letter from your loan holder saying it has referred …

What happens if you default on your student loans?

When you default on your loans, your wages can be garnished, which means the Department of Education can take money directly out of your paycheck. It also can work with the Internal Revenue Service (IRS) to use your tax refund to repay your defaulted student loans, which is known as a “tax refund offset.”

What happens if you don’t pay your student loans?

Getting Your Tax Refund Garnished. If you don’t pay your student loans, you can actually get your tax refund garnished. This is called a tax offset – and it can take all of your tax refund if your student loan is in default.

Can you file your taxes separately from your student loan?

If you’re hoping to save some of your tax refund, there is a workaround to this issue: You could file taxes separately from your spouse. By filing separately, your partner’s tax refund won’t be impacted by your defaulted student loan, or vice versa.

Is the IRS going to garnish my student loan balance?

At this stage, the IRS might also come after your tax refund. If it does, you’ll receive a refund offset notice in the mail in advance of the proposed refund garnishment. If you pay your student loan balance before the IRS issues your tax refund, your refund won’t be garnished.

How can I get my student loan money back?

Double payment: If you can prove you’ve already paid your delinquent student loan debt, you should get back any erroneously garnished income tax refunds. To correct errors and make a claim, contact the Department of Education.