Can i still get my money?

Ive already filed my tax i may not receive it because of student loans...can i do any thing to receive my tax return even if ive already filed my taxes?

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Feb 23, 2010
Past due student loan and IRS tax refund
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

I've got bad news for you. If you've defaulted on your federal student loan obligation and you've already received a notice from the IRS telling you that it intends to keep any refund you may be entitled to, you are out of luck. The IRS is going to take that money and turn it over to the lender who gave you the loan. Furthermore, every year that you remain in default, you will receive the same notice and any tax refund you may be entitled to will continue to be intercepted (taken) until your student loan is paid in full. Meanwhile, the fact that your loans remain in default will do serious damage to your credit histories and FICO scores and you will remain ineligible for any new federal student loans as well as any federal education grants.

Obviously, it's important that you get your loan out of default status. The most obvious way to do that is to pay the full amount of the loan's outstanding balance. Assuming that's not an option for you, you should contact your lender to:

* Try to negotiate a loan repayment plan you can afford
* Find out if you are eligible to participate in the Federal Loan Rehabilitation Program. (You can also go to to obtain this information.) If you qualify for this program, your lender can explain what your obligations will be if you decide to rehabilitate your loan.

If you have defaulted on more than one federal student loan another option for getting out of default is to consolidate those loans, or combine them, into one brand new loan.

By the way, you cannot use bankruptcy to get rid of a past due federal student loan. It will survive bankruptcy, which means you will still owe it.

If your past due student loan is a private loan, the federal government will not get involved in the collection process and therefore, your tax refunds will not be intercepted. Furthermore, there are time limits on how long a private lender can try to collect from you, which is not the case with past due federal student loans.

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