Will Student Loans Take My 2024 Tax Refund?
Student loan payments, wage garnishments, and income tax refund offsets were halted back in 2020 during the COVID-19 pandemic.
But as those pandemic-era borrow relief programs are coming to a end, student loan borrowers will now have to resume payments or risk default and collections, including tax-refund offsets.
However, the U.S. Department of Education has a program named Fresh Start that helps borrowers avoid student loans taking their 2024 income tax refund.
The collections relief you’ve gotten during the COVID-19 payment pause continues during Fresh Start. You’ll continue to get the following collections relief:
Tax refunds (and child tax credits) will not be withheld.
Wages will not be garnished.
Social Security payments (including disability benefits) will not be withheld.
Collection calls will not be made.
The student loans eligible for the Fresh Start program are:
Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
Defaulted Federal Family Education Loan (FFEL) Program loans
Defaulted Perkins Loans held by ED