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Am I making a mistake by letting my tax refund be taken for defaulted student loans?

Everyone tells me I should fight it but I don't see the point in that considering I'll still owe them. There's no way I can pay it down with my $22,000 yearly income. Until I pay it down or off, I won't be able to go back to school anyways to finish my degree.

 
Anonymous

Asked by Anonymous at 7:07 PM on Jan. 29, 2011 in Money & Work

This question is closed.
Answers (7)
  • Unless you need that money to pay for necessities now, then no I don't think you're making a mistake at all. As you probably already know student loans aren't bankruptable, and they can (and do) garnish your wages and take your tax return without suing you first. It sucks, but like you said, you do owe the money.

    Hopefully you'll get it paid off soon and be able to go back to school. If you can start making monthly payments on it, you might be able to pull it out of default and go back to school sooner rather than later. Also sometimes you can negotiate a little with the fees and the interest. Not always, but sometimes that might be worth a shot.

    If you haven't done so already try applying for hardship deferral.
    And if you're super eager to go back to school make sure you're looking for scholarships.
    Good luck!
    Erica_Smerica

    Answer by Erica_Smerica at 11:45 PM on Jan. 29, 2011

  • No, I don't think you're doing the wrong thing. Like you said you owe them. It seems like it wouldn't do much good to fight them.
    genagina

    Answer by genagina at 7:09 PM on Jan. 29, 2011

  • it sounds responsible to me...and sometimes the stress of fighting financial situations just isn't worth it.
    calliesmommie

    Answer by calliesmommie at 7:13 PM on Jan. 29, 2011

  • NO, get it paid off!!!!!!!!!
    2BlondeBabies

    Answer by 2BlondeBabies at 7:57 PM on Jan. 29, 2011

  • The same thing happened to me, you should let them take it and put it toward what you owe. The longer you're in default, the longer it will haunt you so just do everything you can to get it paid. Good Luck.
    Anonymous

    Answer by Anonymous at 8:17 PM on Jan. 29, 2011

  • How much more do you owe on it? Is it likely they'll do this every year?
    SherriPie

    Answer by SherriPie at 10:46 PM on Jan. 29, 2011

  • "letting"?
    Honey, if the government is taking it for defaulted govt loans..you ain't letting
    You simply don't have a choice in the matter. To fight it would be futile.

    Sorry girl, but your money is gone
    romanceparty4u

    Answer by romanceparty4u at 2:09 AM on Jan. 30, 2011

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