When Can A Student Loan Borrower Contest A Tax Offset?

Grounds To Fight The Government When They Seek To Take Your Tax Refund To Pay Student Loan Debt There are a number of Defenses that Student Loan Borrowers can use if the Department of Education or its Guaranty Agencies attempt to take your Tax Refund through a Tax Offset, in order to Collect on a Student Loan Debt Obligation. These Defenses Include: 1. Cases in which the Student Loan Borrower qualifies for a False Certification Discharge based upon Ability To Benefit, Unauthorized Signature, or Disqualifying Read More +

Seizure Of Tax Refund To Collect Federal Student Loans, Part Ii

Notice Requirements Under Tax Refund Offset Program; Say What? By Jay Weller Under 31 USC Section 3720A(b), the Department of Education, through its Secretary, can refer a Debt for Offset only after having complied with certain procedures. The holder of the loan must mail written notice to the Borrower’s last known address, as determined by the Department of Education or the Guarantor. The Courts that have heard Notice Issue Cases, have ruled that Actual Notice is not required. The Collector must only use Reasonable Means Read More +

Seizure Of Tax Refunds To Collect Student Loans

The Federal Tax Refund Offset Program Unleashed! The Federal Tax Refund Offset Program involves a complete seizure of all tax refunds that are due to debtors who are in default on their student loans. The Program also permits the seizure of monies due debtors through Special Payments such as economic stimulus monies. The Federal Statute allows these offsets, even for debts that are being administered by or collected by, a third party, or private party, acting on behalf of the Federal Government. This same Federal Read More +

Dim Prospects For Students With Student Loans

Student Loans Increasingly Come With Lesser Returns And More Burdensome Debt By Jay Weller The Federal Reserve recently reported that less Consumer Loans have reached delinquency than in recent years. This trend is not true for Student Loans where delinquencies continue to climb, and Loans are made without consideration of a Student’s ability to pay. Beginning in 2003, the New York Fed has been examining files procured from Equifax to analyze the dynamics involved with Student Loans. Prior to 2009, young people with Student Loans Read More +