School Loan Experts: loans and tax refunds

I wonder if I'll get the stimulus rebate if I'm still paying on my '03 taxes? I mean, they keep my actual refund every year, so I'm assuming they won't be giving me this $600. And if that's the case, I wonder if they'll actually reduce my '03 tax bill by $600. Hrrrmmmm....

All I know is I ain't counting on getting anything.

 

It should reduce your tax bill by the $600 (or whatever your entitlement is). In other words, you'll get it, they'll just keep it to offset what you owe.

 

I went ahead and filed my 07 returns. I am just hoping that my refund is going to make it thru. I filed at H&R block and will have the check supposedly on the 29th. I have got my fingers crossed becuase I am in default on my student loan, but I worked out verbally a rehab payment on Friday. I have not yet paid my down payment becuase I need to use the money from the refund to do so. I already have a call in to my officer today and I am going to try and explain to them that I dont get paid until the 29th and that I need to wait til then to send in the "trigger" payment for my rehab to officially begin. It is my hope that by staying in touch I can stave them off from putting me on the tax refund list. I dont know, but I figured it was worth a shot. I truly intend to make good on my end of the bargain. I want the default removed from my credit and want to pay what I owe and move forward. I just have less of an incentive if they nab my refund check. My plan is to use a portion of the proceeds for this debt, as well "pay for deletion" on a couple of other smaller ones. Any thoughts????

 

One of my student loans was actually in the default, although because I have moved around so much in the last year and a half, I do not know if I ever received any garnishment notices. I spoke ot the lady for the first time last week and that is when she informed me that my case was scheduled for review yesterday. Again, not sure if she was making it up, or if I just timed it very lucky. So I gave them my banking info, and agreed to let them draft the payment every month for 9 months to rehab. in oorder to prevent them from conveneing and taking my refund and/or initiating garnishment. Feels like the right thing to have done.

Spoke to HR block, though I didn't ask specifically if I was on offset list, they informed me that there records indicate that my check will arrive there on 2-29. I am assuming/hoping they would have told me then if in fact it was to go elsewhere...

 

I got a "check will be paid on" date from TurboTax when I filed electronically. On that date I got my refund less what I owed from a previous year. So, if you owe them something, they'll take it out before your check is deposited.

 

Just an FYI to all that have helped. I actually just got my Tax refund for the full amount that I was expecting. It wasn't even supposed to come until next Friday. What a relief!! The fear of having it offset my defaulted school loan turned out to be a blessing in disguise because it prompted me to take control of the situation. Because I had nothing to lose, I was able to negotiate a payment plan that was fairly resonable. I just had to agree to let them draft the funds directly from account each month. So, in 9 months I should be in slightly better shape with this whole saga!!

The only concern that I have now is if I deposit the check to my account, is there any way they could draft the whole amount? I do not think so, but i am semi nervous. It is the only bank account that I have so I do not have much of a choice.

 

Open an account at a different bank or credit union and put your refund there. You can always write a check on that bank to your other account.

But I don't think they'd do that if you have a written agreement.

This just proves that it's better to meet these things head-on. I know so many people who avoid their problems. If they'd just pay (or put aside in a special account) some amount of money each month, the problem could soon be taken care of.

 

I agree with facing it head on from here out. I actually deposited the check, but plan to immediately withdraw the majority to use to open another account. They are not going to take the payment until tuesday.

You raise another point though with regards to having something in writing. They told me that I can not get anything in writing until after I made 7 consecutive payments. Then, they will send me a "rehab" contract, I sign, and send back. This spooked me a bit, I was assured this is the normal procedure. I then make the last 2 payments and then my loan will be reassigned to the guarantor. All default notations and negative info are to be removed and the account is supposed to appear as though I have never defaulted. I am dealing with DCS which I verified is one of the government contractors. So, I am hoping that all of this legit. I had the lady reiterate several times that this is the normal procedure and had a supervisor confirm.

Has anyone else here had a experience with something like this.???

 

I would suggest that you contact the Ombudsman at the Department of Education. He/she can tell you if this is the correct procedure, and if not, can probably intervene on your behalf.

 

Hey all,

Just wanted to add to the forums' general knowledge that when you go to H & R Block to get your taxes done, there is no way for us to know whether your refund will be "taken" by the IRS. I work there part time and you have no idea how many times I have seen people get upset with us for not telling them that they were not going to receive their refund due to offset. We prepare the return and we only "see" what the client receives after the return is accepted by the IRS.

Thanks,
A