Originally Posted by igsis2
They are actually tarnishing a portion of the wage I make parking cars for University sports and charging a fee. Bare in mind my income was 3000. Last year. I use my refund for emergencies such as car repair so last year I completed a multi yr of states refund forms That I hadn't competed due to not being able to locate a form being non tech user did not realize could do online at no charge. They took the entire refund yet I saw no credit given. The amount is for one class and fees that I would never have taken if I had known that it would cost 5000. For an independent study in which I saw the prof 3 times. I could have done as well for free at home. I had never taken less than 22 hours and he wouldn't allow me to take a full load and in fact had denied classes I had done a semester of work in on reading day. my understanding was they could garnish govt funds i.e. university and state..all touched so far but the Fed is my worry. Another issue I 've had no lawyer who wants to take on the university though right now UIUC has many woes so they might be weakened. IF I make token payments will they have to stop? Thanks
The problem is that as you default on student loans, they become pretty awful. Collection activity may be brutal, with high fees being added to the balance, no lawsuit or court order needed for a wage garnishment and tax refunds automatically intercepted to pay for the debt. A notice of default remains on a credit report until cleared, and there is no statute of limitations for collections. Further, they are almost never dischargeable in bankruptcy.
Since you’ve missed 9 or more payments, your student loan is likely in default. As your loan is in default, you may not get your tax refund due to a Federal Income Tax Return Intercept. Then, the U.S. Department of Education sends a note to the Treasury who, upon being told by the IRS to issue a refund check, instead forwards the funds to the U.S. Department of Education to be applied towards your defaulted federal student loan balance. You will not get back any refund money taken to pay your defaulted federal student loan. You can avoid future intercepts by rehabilitating your federal student loan and remaining current on payments. As you’re in default, you need to get your loan out of default, get a payment plan you can afford, and then you can file your tax return. there are a number of flexible and affordable payment plans for federal loan borrowers. As per the Higher Education Act, borrowers in default have the right to cure their defaulted student loans by setting up a "reasonable and affordable" payment plan with whoever is holding them. This is a one-time only chance to cure the default by making a total of nine consistent and consecutive payments that are within your means. The sum is negotiated, with you providing documentation on your income and bills. The collectors cannot set an arbitrary minimum payment. Sure, the collectors would like a regular $175, but if that figure isn't feasible, you have the right to make your case and make it stick.plz Contact the collection agency and let them know you understand your legal right to rehabilitate your student loans and that you intend to arrange a "reasonable and affordable" payment plan