No. When a qualified student loan goes into collection it's no longer a "qualified" student loan. The interest is no longer deductible and any fines, penalties, late fees and collection fees are never deductible under any circumstances.
If you have any refund due on your tax return, you can expect it to be garnished by the IRS and the amount garnished to be applied to the loan balance. If you are married and your spouse does not have a legal obligation to pay the debt, then you should still file a joint return along with IRS Form 8379 which is included in all versions of the TurboTax program. This is so that portion of any refund due that is a direct result of your spouse over-paying, will be refunded. Only that portion of the refund that can be directly attributed to you will be garnished and applied to your debt.
So if you file joint and do not include the Injured/Innocent Spouse Form 8379, the entire refund will be garnished and applied to the debt.
