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dkalnitz
New Member

If I owe $10,000 in defult student loans will my $7000 offset tax return take my student loan down to $3,000 owed?

Will my offset tax return go 100% towards the balance of my unpaid student loans? 

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MinhT
Expert Alumni

If I owe $10,000 in defult student loans will my $7000 offset tax return take my student loan down to $3,000 owed?

Yes, you are correct. If the IRS garnishes your tax refund to pay for your defaulted student loan, then the balance owed on the student loan will be reduced by the amount of your refund. The IRS will send you a letter with all the relevant amounts.

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1 Reply
MinhT
Expert Alumni

If I owe $10,000 in defult student loans will my $7000 offset tax return take my student loan down to $3,000 owed?

Yes, you are correct. If the IRS garnishes your tax refund to pay for your defaulted student loan, then the balance owed on the student loan will be reduced by the amount of your refund. The IRS will send you a letter with all the relevant amounts.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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