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Tax offset from student loan help.?
Just recieved a letter from Capital Management Services regarding a old student loan of 4,000 from Kaplan University, this has been years ago, i forgot, and they just sent me a collection letter just before tax time saying to get ahold of them within 30 days to verify this debt. Its Dec.2012, i called the offset line and its not there for 2013 yet. Is there a way to keep my name off of the tax offset list for 2013? Can i make a payment now to stop this? Btw my last name has chaned since then will this help? Advice please on how i can control this just until i can get my refund. I am married as well and file married.
Thanks for the answers so far, another tidbit of info here is Citibank is attached to this as well. It seems they just found me, i was in the army at the time all over the place and didnt realize i still owed it. Its not a threatening letter, intend to pay, just knocking on tax time and making sure its NOT a government loan.
5 Answers
- Bostonian In MOLv 78 years agoFavorite Answer
This sounds like it may have been a private student loan. Those loans are NOT recoverable by offset of your tax refund.
If it is a government guaranteed or direct Stafford loan and you are in default it can be recovered through offset of your tax refund. It could pop on the offset list at any time. If it is subject to recovery by refund offset, Sallie Mae will place the offset flag. You'd have to contact them to see what could be done to avoid the offset.
- Kristi HowardLv 58 years ago
Once you file your taxes, you'll literally have to check the refund offset # every day...and even then, sometimes it's not 100% accurate.
Your name being changed by marriage will not hide you from the debt. Your social security # is what it's attached to, not your name.
If you do have this garnished (offset) your spouse could file, I believe, for injured spouse to get his portion of the tax refund, but I hear it can be a lengthy process, SHOULD your refund be flagged.
As Judy said, buck up and start paying on it. You may or may not get lucky this year, but if you DO get lucky this year, I can guarantee you won't be next year, so might as well have the 9 months (minimum) of steady payment to get you out of arrears and save your refund for 2013.
- BobbieLv 78 years ago
FAFSA QUALIFIED government student loans can be assigned to the FMS REFUND offset program for this purpose and time in your life.
Making payments should be a way to help prevent this from taking place at this time in your life IF this is and was a government backed student loan for this purpose and time in your life.
Hope that you find the above enclosed information useful. 12/21/2012
- JudyLv 78 years ago
Pay the bill.
Getting on a payment plan and sticking to it for about 9 months would probably get it out of default, but it's too late for that for this year
And no, changing your name doesn't help you.
If they decide to file the offset paperwork, your refund is gone.
- troLv 78 years ago
your loan with Kaplan was a loan between you and them, not a gov't sponsored student loan
the collection agency will very likely in time get a court order to garnish your wages but only defaulted gov't sponsored student loans offset your refund
