andsoitgoes Posted March 30, 2012 Report Share Posted March 30, 2012 Hi everyone,So I have an odd situation. I had a student loan to the tune of about 2600 in about 1996-1997. I was 17 at the time of taking out the loan. I attended school for about 6 months and then I ended up leaving the country.I've been in Canada since then and my parents advised they would resolve the loan situation for me. Or so I thought. My father passed away the other year and I came across some rather disconcerting information and have found out that, in fact, nothing has been taken care of. I just got my information for the financial assistance site where I was able to view my loan information. The last payment was made in 2003 and the loan has been fully defaulted as of 2004. I understand that I'm SOL on the SOL in this situation (see what I did there? ) but I'm at a loss as to what I need to do now. Obviously as I don't live in the US and haven't for, well, 15 years now, I don't have any plan on coming back. The only connection I have in the US is my tax returns, which I would assume may be garnished due to this? The loan has been referred to NCO Financial Systems, based on what I saw from my US credit report.What I'm trying to ask is what I need to do here. I assumed all this was taken care of. From what I can see, due to interested and such I now owe nearly twice my loan value as well as whatever other cost might be there. I'm not sure if I have any rights to protect myself or if I'm just screwed. Or, do I have anything I can do to... well, fix this. Will my tax refunds certainly be intercepted? I'd rather work on getting this resolved, hopefully for less than the current value, rather than losing the back refund I'd be getting.At the end of the day, other than my tax refunds, I have no ties to the US. This doesn't affect me in any way, other than the vague idea that I have this loan out there, but I'd still like to know what the situation is and possibly how to resolve it, in case it affects my tax situation negatively.Thanks much in advance,Nick Link to comment Share on other sites More sharing options...
andsoitgoes Posted March 30, 2012 Author Report Share Posted March 30, 2012 Ah. Never mind. Apparently the IRS returns have been intercepted and I'll be paying it off that way. I have no budget for paying them off in any other way, so they'll just have to wait another few years until I get another tax return refund it seems.My $2600 loan tripled into almost $7000, damn how I wish my parents just told me they weren't able to take care of it... Link to comment Share on other sites More sharing options...
1stStep Posted March 31, 2012 Report Share Posted March 31, 2012 Just renounce your US citizenship and be done with it... Link to comment Share on other sites More sharing options...
andsoitgoes Posted March 31, 2012 Author Report Share Posted March 31, 2012 You obviously don't understand the procedure in renouncing ones us citizenship. It's a 10 year process and does nothing to help, I still need to file and handle tax returns and so forth. I need to figure out if there's anything I can do to stop/reverse or otherwise resolve the offset to my taxes. Link to comment Share on other sites More sharing options...
1stStep Posted March 31, 2012 Report Share Posted March 31, 2012 As far as the student loans go, the IRS is going to continually seize your tax refund until it's paid, unless you rehabilitate the loan - see this website here - Loan RehabilitationSince you are in Canada, I do know that a few banks offer a USD denominated account where you can set up payments...Yes - I have researched renouncing my citizenship - I have dual citizenship w/ a Latin American country. The 10 year is a federal tax look back period in which the IRS attempts to determine if you are renouncing to evade federal income tax. If they determine you are, then they will charge an "exit tax" of 30% of assets you are taking out of the country. In fact in the Latin American country I have my citizenship in, there have been 10 US citizens that renounced in 2011 - they needed to wait approximately 12 weeks for an appointment at the consulate to do so. Link to comment Share on other sites More sharing options...
andsoitgoes Posted March 31, 2012 Author Report Share Posted March 31, 2012 I would have to still wait quite some years, as I am working on getting my taxes caught up. Plus I'd have to get my Canadian citizenship, something I have no ability to put the time aside to do. As for the loan rehab, I may look into that. I understand the IRS holds everything for 30 days before they distribute the funds to the guarantee. If I can figure out something in this time then maybe I can find a way to not lose my money and pay back my loan all at the same time. But due to this being a somewhat specialized situation, I haven't found much on the Internet to answer for this. All I know is that if the lender takes all that money, they'll need to wait another 3+ years before they get any money from me, as since I'm off work right now I'll have $0 in tax returns until I get back, as if that money is gone then what incentive do I have to do anything? Link to comment Share on other sites More sharing options...
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