If your loans are in default and you want to avoid student loan tax refund garnishment, consider rehabilitating your loans to get them in good standing. The process of rehabilitation is a bit more complicated than consolidation but can help you get out of default.

Through loan rehabilitation, you must make nine consecutive payments on time. Under this option, you will be set up with a reasonable payment plan, with monthly payments that are equal to 15 percent of your discretionary income.

You need to contact your student loan processor to find out the process.

If your student loan payments are overdue, unfortunately, the government is well within its rights to come after and garnish your tax refund. Through the Treasury Offset Program (TOP), the government can seize your refund in order to repay your defaulted student loans.

But having your tax refund garnished should come as no surprise. You will receive a notice letting you know that a tax offset will occur before any action is taken.

If you didn’t get a notice or have any questions or concerns regarding the tax offset, you can contact the IRS at 800-304-3107.

Student loan borrowers have 65 days from the time of the notice to request a review and object to the tax offset. You may want to object if there’s been a misunderstanding surrounding your student loan payments or if your loan is in the process of being forgiven or discharged.  If you did not appeal in the 65 days from your letter, the IRS will take your refund.