What happens with my tax return and student loan?
If you are in default they will take however much of your refund is needed to satisfy the loan. For example, if you owe $2000 and your refund is $1500, they would take it all. You would owe them $500. If your student loan is deferred or in good standing, they will not take your tax return to pay for it. My relative had her whole tax refund applied to a defaulted student loan.
There is no peacemeal with the IRS. They will not only garnish your entire tax return, but they will also add interest and thousands of dollars of fees each year ( with no description of those fees). It traps you in a hole that you may never work out of. That way you spend all of next year trying to pay interest and fees, only to find at the end of the year new interest and fees are added keeping you buried for another year. It is relentless and never ends. You cant file a bankruptcy to get out of it. And then when you get older they come after your entire family inheritance to pay for years of interest and fees. Better to live in a hut for a couple years and pay the IRS off in full and save yourself years of hell.
