Facing Student Loan Default? Your Tax Refund—and More—Could Be Taken
Student loan repayment resumed in 2024, but millions haven’t acted. If you’re one of them, time is running out to protect your tax refunds and avoid other aggressive collections.
Know the facts:
- Default starts fast: Miss one payment and you’re delinquent. After 9 months, you’re in default.
- Credit takes a hit: Default can drop your score by 200+ points, affecting housing, jobs, and more.
- Collections are coming back: The government can seize tax refunds, garnish wages, and reduce benefits—without court action. While temporarily paused, this could resume at any time.
- No blanket forgiveness: Broad cancellation didn’t happen.
- An IDR Plan can keep you out of default: Stay in good standing with an Income-Driven Repayment Plan (as low as $0/mo) and earn forgiveness credit.
Act now to protect your tax refunds, avoid deeper financial harm, and get on track for forgiveness.
New Yorkers: Free, personalized help is available. Call our helpline at 888-614-5004 for urgent support.
Take These 4 Steps Now:
Step 1: Check your Federal Student Aid account
Log in at studentaid.gov to find out:
- Whether your loans are in default and who’s managing them.
- Who your loan servicer is.
- Your current balance, interest rate, and repayment status.
In Default?
Learn how to get out of default and pick the best approach to avoid collections.
Step 2: Create an account with your loan servicer
Visit your servicer’s website and:
- Register or log in to your account.
- View your payment schedule, past due notices, and other correspondence in your inbox.
- Set up or update your payment method.
Step 3: Explore repayment plan options
You may qualify for an IDR Plan based on your income. Use our Repayment Plan Calculator to see payment amounts. These plans can:
- Lower your monthly payment.
- Keep your loans in good standing.
- Help you qualify for forgiveness down the line.
- No job or income required!
Step 4: Have a past due balance? Call your servicer now
Ask about:
- A retroactive administrative forbearance, which may bring your account current.
- Other options to stop collections before they start.
- If you cannot afford any repayment plan, ask about a deferment or forbearance.
Want Personalized Help?
New York state residents can get free, unbiased assistance with student loans or financial aid today.
Schedule a virtual appointment or contact us at 888-614-5004 or edcap@cssny.org
