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Getting tax refund returned after rehab

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Getting tax refund returned after rehab

I just finished rehabing my Department of Education student loans. On the rehab agreement that I signed, it stated that any involuntary payment would be refunded. It specifically listed Treasury offset. My last 2 tax refunds have been taken because I was in default.

My question is, what do I do next? Will they automatically send me a check, or do I need to specifically ask for it? Will they send me the total of my last 2 tax refunds, or just my most recent one?

Any help would be greatly appreciated, since I can't seem to find any information online.

Thank you.
Message 1 of 8
7 REPLIES 7
Senior Contributor

Re: Getting tax refund returned after rehab


@bosefus06 wrote:
I just finished rehabing my Department of Education student loans. On the rehab agreement that I signed, it stated that any involuntary payment would be refunded. It specifically listed Treasury offset. My last 2 tax refunds have been taken because I was in default.

My question is, what do I do next? Will they automatically send me a check, or do I need to specifically ask for it? Will they send me the total of my last 2 tax refunds, or just my most recent one?

Any help would be greatly appreciated, since I can't seem to find any information online.

Thank you.

I have never heard of someone's involuntary payments getting refunded - I've been doing some googling and I can't find any additional information about it, either.   I would assume that it would only be the most recent tax refund.   Honestly, I would call, since this seems somewhat unusual.

When I rehabbed it was after they took my tax return (they weren't garnishing me), which is how I found out about the default and they would not return mine, and even told me that they could continue to take invountary payments as allowed by law, even through rehab if they so chose.   No one I've helped or friends who have gone through rehab have gotten refunds, either, so I hope this is a new offering.


EQ: 795 | EX: 785 | TU: 783 | Accounts: 2/6 6/12 10/24
Happy practitioner of AZE6or7or8
Message 2 of 8
Community Leader
Valued Contributor

Re: Getting tax refund returned after rehab

I actually just stumbled upon this a few weeks ago on a student loan website. It is possible to get the tax offset refunded but first you have to understand a couple things. First, it's not a right. They evaluate each case individually and can turn you down if they feel like it (seriously?!?). Second, it's only granted based on financial hardships. Pretty much I need it to pay my rent.
I don't know enough to tell you what they might be looking for, the odds of getting it, etc. I'm including a link but it's just the first one I pulled up and explains it will. You're looking for articles like from "tax offset refund student loans."
https://tateesq.com/keep-tax-refund/
Hope this helps. If you have any further questions feel free to ask and if we don't know, we can probably still find out.



Message 3 of 8
New Visitor

Re: Getting tax refund returned after rehab

I just signed the same letter and wondered this too. How did this work out for you?
Message 4 of 8
Community Leader
Valued Contributor

Re: Getting tax refund returned after rehab

@mpeters23
You applied to have you take reset refunded?
What proof did it require? What timeframe did they give you for an answer? Did you already rehab? I'm curious. Any new information is helpful to pass on.
Thank you and good luck.



Message 5 of 8
New Visitor

Re: Getting tax refund returned after rehab

I didn't apply for a reversal of the refund. I completed the rehabilitation process and the final agreement later that I was required to sign states that any involuntary payments made would be refunded (specifically stated the treasury).
Message 6 of 8
Community Leader
Valued Contributor

Re: Getting tax refund returned after rehab

Oh that's great!!
If you're asking about rehab there's a very helpful thread you might want to read.
https://ficoforums.myfico.com/t5/Student-Loans/My-Student-Loan-Rehab-Success-Story/td-p/5842583



Message 7 of 8
New Contributor

Re: Getting tax refund returned after rehab

Your tax refunds would have been applied to your student loan debt. I have never heard of anyone getting a refund either If taken before you entered rehabilitation. But here is a link with more information. It is possible. I have provided a link with more information. Hope this helps. https://studentloanhero.com/featured/student-loan-tax-offset-hardship-refund-garnished-due-default-b...
Exp - 847 TU - 838 EQ - 846
Message 8 of 8
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