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Q:
Can my taxes be offset to pay my student loans?

I have been struggling financially and am seriously delinquent on my defaulted student loans. Is it possible for my taxes to be offset to pay on my student loans? I always count on the money I get back to help catch up on bills. -Mitchell

Mitchell,

Yes, it is possible for your tax refund to be intercepted to satisfy these debts. According to the Department of Education, if the offset of your federal tax refund creates a severe hardship for you, it is possible to request a refund. Examples of extreme hardship include very high medical expenses or the threat of eviction from your home. To request a refund, you will need an explanation of why the offset is causing an extreme hardship, a copy of your income tax form and other proof of income, copies of your monthly bills and, if possible, copies of the bills that represent your case for extreme hardship. Send this information to your guaranty agency.

Good luck! 

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