Defaulted student loan borrowers planning to file their taxes should know that any refund they were expecting will likely wind up at the Department of Education (ED) instead of their bank account. Tax refund offsets are one of the powerful tools the government uses to collect defaulte
This week, the National Consumer Law Center updated its policy brief highlighting the need to end the seizure of Earned Income Tax Credits (“EITC”) from defaulted federal student loan borrowers. As we have said in previous blog posts (here and here), seizing EITC payments is a counter
This morning, U.S. Senator Elizabeth Warren sent a scathing letter to the U.S. Department of Education highlighting some troubling data about the way that the Department treated Corinthian Colleges borrowers eligible for fast track relief. The Department announced that these borrower
It has been one month since tax season came to an end. By now, many student loan borrowers have learned the hard way that the federal government will take their tax refund, including Earned Income Tax Credits (EITC), if they are in default on a federal loan. A couple of months ago, w
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