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Offset of tax refund


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I received a notice from my student loan issuer the other day that they intend to offset my tax refund. Just to be up front, let me say, I am not avoiding paying the student loans if I owe them, however, I have one loan admin telling me that I do not owe anything and another telling me I owe the full boat. My questions are as follows:

1.) Most of my tax refund comes from the Earned Income Credit and the Child Tax Credit. Can this money be seized, or can they only seize the amount I actually paid in?

2.) My wife and I file jointly. Is there a form she can file to get the refund back if they do seize it? (some sort of injured spouse clause or something)

3.) Is there any chance this is a bluff on their part? If they say they are going to offset, are they likely to do so?

4.) I am considering signing up for loan consolidation through William D. Ford until it is determined whether I owe or not. Will signing up for a repayment plan such as William D. Ford help me to avoid the offset?

Thanks in advance for any help. If this needs to be moved to another forum, I apologize in advance.

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You don't know if you owe the entire balance of a SL or not?

It is complicated. Hey, thanks for the reply though...doesn't really answer any of my questions or anything, but I am glad I could rile your curiousity. If anyone has answers for me, feel free to respond. Thanks in advance.

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Yes. They are not bluffing, they can offset it. You can request forbearance which will uphold the offset for a while.

No you can't a forbearance. Tax offsets are only used for defaulted loans...once you default you loose all deferment and forebearances privileges.

It is probably too late to stop the tax offset. Back when I was collecting, we would get lists in early September for borrowers being attached. Normally they had until late Novemember to meet any requirements to get off the tax offset list. Most required 2 or 3 voluntary payments or a % of the loan paid.

Earned Income and child tax credit are seized. Your spouse can file injured spouse but there are some states even that does not apply..can't remember which. Injured spouse with returns any over payment due her plus a % of earned income.

You really need to get your loan resolved. You are in default and you could end up having your wages garnished...and they do not need a court order.

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