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posted Jan 1, 2020 4:32:34 PM

IBR loan and interception

Can anyone tell me, if you are on an IBR plan for student loans, does your return automatically get intercepted? I have been unable to reach my loan servicer over the holiday and I honestly forget. This will be the first time in a while I will actually have a refund coming to me so I am not sure what happens. In comparison to my debt it isn't much, and I could use that money so desperately. But I don't know how this goes. I'm assuming they take it but really hoping they won't bc my kids are in desperate need of a few out of the normal budget items and this would help so much. Thanks for any help!

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1 Replies
Employee Tax Expert
Jan 2, 2020 5:11:34 AM

No, if you are on an IBR plan for your student loans and are not in default on your loans your federal refund should not be intercepted. 

If you are in default on your loans (haven't been paying them) then yes, your refund can be garnished and applied to your student loans.