Medical Student Loan Repayment

When you stop making payments on your federal student loan, your loan balance falls into default. In the U.S., tax garnishment is one of the many options the U.S. Department of Education has to collect unpaid federal education loans. You have the right to appeal a potential tax offset and request that the IRS not seize your tax return as payment on your defaulted student loans.

Appeal the Notice of Tax Refund Offset

Prior to seizing your annual tax refund, the IRS will notify you in writing that it intends to garnish your tax refund. Upon receiving this notice, you have the legal right to challenge the incoming tax garnishment by requesting a formal hearing and review of your case.

You must have legitimate grounds under which to request a hearing and contest the student loan tax garnishment. Legitimate grounds for contesting a tax offset include, but are not limited to: