Defaulted student loan

[ambusch]

i live in washington. i have a defaulted student loan and wuld like to know if the gov. will be able to take my tax return because of this???

 

[racer72]

Yes.
What Happens if I Default on My Loans?

You really do not want to default on your loans. But if you do, this is what may happen:

Credit bureaus may be notified, and your credit rating will suffer.

The U.S. Treasury may withhold your tax refunds toward repayment of your loan.

You may have to pay additional collection costs.

You may be subject to Administrative Wage Garnishment, whereby the Department of Education (or your lender) will require your employer to forward 10% to 15% of your disposable pay toward repayment of your loan.

Federal employees face the possibility of having 15% of their disposable pay offset by the Department toward repayment of their loan through the Federal Employee Salary Offset Program.

The Department of Education or your lender may take legal action to force you to repay the loan.

You will no longer be eligible for federal aid.