Will Student Loans Take My Refund 2023

The United States government halted all student loan collections on federal student loans at the start of the pandemic.

The student loan relief currently lasts through June 30, 2023.

This means that your tax return won’t be taken to offset your outstanding federal student loan balance for the 2023 tax season.

The department of education says these collections will stay paused for at least six months after this payment pause date ends.

• The loans That Are Eligible:
• Defaulted Direct Loans.
• Defaulted FFEL loans.
• Defaulted Perkins Loans owned by the Education Department.
• Defaulted HEAL loans.

How to avoid tax refunds from being taken

If you’ve failed to make payments on your federal student loans, your student loans are considered to have entered into default status by the Department of Education.

If you find yourself in default, your federal student loans will also into collections.

When this happens, your federal income tax could be garnished by the Department of Education.

The U.S. Treasury office will attempt to offset the delinquent loans. This is what is called a student loan tax refund offset.

You will know if you’re at offset through a mailed notice through the mail.

If you find yourself in default you should talk to the lender and try to work out a payment plan or ask for a deferrment.

Can Private Student Loans Take My Tax Refund?

No they can not. They still can go after you by collections or lawsuits. It is better off talking to the lender and working out a workable repayment plan.

By defaulting on any loan especially student loans can affect your credit score and your ability to get credit in trhe future.