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01-23-2014 06:51 PM
Is it maybe a state by state thing?
I have 2 loans that I am currently rehabbing. The collection agency told me I can continue the rehab even if I have a zero balance and the dept of ed will send me an overpayment check.
This is paying down my debt by almost half
I doubt it's a state thing, but I have no idea why they told you that.
Are you already in rehab? If so, then maybe it's okay if the balance falls below $1000 as long as you start the rehab process before it gets there. I seriously have no idea, though.
01-25-2014 12:26 PM
Yes, I am currently in a rehab program. If I wasn't, I think that the process is a little bit different.
I was just curious if anyone has had their state refund offset, or if they just do the federal. I'm failrly new at this
01-28-2014 09:37 AM
I have been paying on my student loans since last January. I completed the rehabilitation process completely in October of 2013. I filed my taxes this past Friday 01/24/2014. I was not aware that it was up to me to call the US Dept of Ed once I completed rehabilitation to have my social unflagged. I have already filed, I am still flagged, yet my account is now with an outside source that I have been making monthly payments too. The lady I spoke with at the US Dept of Ed, stated to me, that my taxes would still be offset, and they would take my entire tax return and send it to the company I am making payments to. It would then just be applied to my total balance. She did submit to have my social unflagged but stated that it will take 30 days. If your account is current, no longer in default, with no missed payments in a year, will an actual person not check my flag and see that it had just not been removed before I filed?
01-28-2014 02:54 PM
I used to work on the DOE contract for a long time so I am aware of their process. Here's how it works. If the loan was placed with DOE late last year then there is a good chance your not certified for the IRS to take it. If the loan has been in default for 6 months or longer then there is a good chance they will take your refund check. Once your certified then thats good for life until the loan is out of collections. They will still take your refund check , if your certified, even though you're making voluntary payments. State refund offsets depend on the state. There are a few ways to avoid this.
-If the IRS owes you money then don't file until you're out of default. You have 3 years to file if money is owed to you without losing it. Do the rehabilitation program for 9 months and then wait at least 60 days for them to remove you from the offset list until you file.
-If you want to file for some reason and it's a joint return then you can call DOE to get an injured spouse form to get their portion back.
call this number before you file to see if your certified 800-621-3115
01-28-2014 07:51 PM - edited 01-28-2014 07:52 PM
When I call dept of ed it tells me that my loans are now with the other agency. Do I just need to dial 0 and speak to a rep to find out if I am certified?
Call this number to see if you are certified: (800) 304-3107
It will tell you exactly who certified you, and answer your question about who you need to call next.