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March 25, 2020
Question

With the stopping of federal student loan payments. If I file my taxes right now. Will the IRS seize my refund this year if I have Federal student loan debt that is in default? They have been seizing

  • March 25, 2020
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1 reply

SusanY1
March 25, 2020

UPDATE:  Unconfirmed reports are out that there may be up to a 60-day reprieve from this, but much is still not known as it is being sorted out.  The same reports indicate that refunds offset and wages garnished would also be refunded. Please know that this is unconfirmed and was just a proposal. The situation is still very fluid so there is a possibility that some relief may be granted.

 

You can watch our page HERE for updates and we will keep you apprised as we learn more.  

 

Probably.  There do not appear to be any provisions in the current relief packages suspending collections efforts on defaulted loans.  The suspension is only for student loan payments in good standing. 

 

Defaulted student loans subject to refund offset are likely to still be subject to offset.  You could call Debt Management Services at 800-304-3107 to inquire for certain, but expect long wait times due to both the time of year and current low staffing levels. 

 

[Edited March 26, 2020 8:30 AM PDT]

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