Most of you are here today because you received notice that your federal tax returns will be offset this year. For those of you that are unaware, a tax offset means the Federal Government of the United States will be seizing your Federal income tax return and possibly your state  return as well (depending on the state of residence) because your Federal Student Loan found its way into default/collections.

I’d like to start off by congratulating those of you who stumbled onto our web page last year and purchased the Student Loan Blueprint. Most of you grew tired of having your tax returns offset year after year, some of you had your tax returns offset for the first time and simply wont let it happen again. Regardless, the Feds won’t get their hands on your income tax returns this year! Most of you who purchased the Student Loan Blueprint should have began the loan rehabilitation process during the summer. So…

Congratulations:

To those who started loan rehabilitation in May 2011: should be making the final rehabilitation payment this month (January 2012). As long as the payment was made on or before the 25th, you should be in the clear to file mid-February.

To those who started loan rehabilitation in June 2011: should be making the final payment on or before February 25th for those who plan on filing in March

To those who started loan rehabilitation in July 2011: should be making the final payment on or before March 25th, barely making the tax filing deadline of April 15th.

Make sure you don’t have any stray loans in default that you didn’t know about. As long as you were able to follow the blueprint, all your loan(s) should be well on its way OUT of default/ collections but remember,

“Don’t make the biggest student loan borrower mistake!!”

There are still procedures and paperwork the collection agency needs to complete before your loans will be taken out of default even after the final payment has been made. Most people make the mistake of filing their taxes immediately following their final payment. Your tax returns will still be offset if you do this! Wait about 5-15 days after you made your last payment. Then contact the collection agency the loan(s) are assigned to, along with the Treasury Offset Department at 800-304-3107. You’ll want your loan account closed with the collection agency and the U.S. Treasury to inform you that you’re no longer certified for Treasury offsets. It’s even safer once the loan is assigned to a new lender. Once confirmation is received, you’ll be 100% in the clear to file and will receive your entire income tax refund! Once again, congratulations!

Those of you who are new to our webpage probably have a lot of questions regarding the status of your tax return. Hopefully we’ll be able to answer all your questions here today, help you solve your tax dilemma, and assist you so that you can make the most educated decision. If you have already purchased the Student Loan Blueprint, read the “Treasury Offset Certification Process” section before continuing on to the following FAQs. You can also check out Student Loan Tax Offsets 101

The following questions have been taken from comments left on my blog. Visit my blog!

Q: Stephanie K. says: How do I know if my tax returns will be taken? January 22, 2012 at 10:34 am

A: Your best bet is to call the U.S. Treasury’s Offset Department at 800-304-3107 to check if you’re certified for Treasury offsets.

Q: Steven H. says: I just filed my taxes this past week and learned that my tax returns will be taken this year. Is there anything I can do before they take it? January 23, 2012 at 2:52 pm

A: Unfortunately, there’s not much you can do once you’ve filed. You can attempt to file a hardship claim but at this point, chances of seeing your tax money is pretty slim.

Q: Anonymous says: If I have an offset, will the collection fees also be taken out as well? January 22, 2012 at 4:21 pm

A: Involuntary payments received through treasury offsets are not applied towards collection fees. Tax offsets are applied to the loans outstanding interest before the principle is even touched. If the offset pays off the remaining interest, the rest will then be applied to the loan principle. Collection fees are calculated based off a percentage of the loan’s combined principle and interest. Therefore, as the loan’s combined principle and interest goes up and down, the collection fees will reflect accordingly. Click here to learn more about payment applications.

Q: Chris S. says: I wish I found your webpage sooner! They already took my taxes last year. Are they going to take it again this year? January 22, 2012 at 11:19 am

A: If your taxes were taken in the past, you’ve been certified for the Treasury Offset Program. This means that your taxes will continuously be offset until the loan(s) is either paid off or out of default.

Q: Alicia says: The total student loan debt was 8600, last year they took around 3900 , this year they are taking over 9000, and they said the debt still won’t be paid in full.. How can they do this?? January 12, 2012 at 6:06 pm

A: This will depend on how much interest has accumulated on the loan. There’s a good chance the interest has grown out of control if a payment hasn’t been made towards the loan(s) in a substantial amount of time. If this is the case, the money from your tax offset is being applied towards your loan’s outstanding interest. Since you’ve already been certified for treasury offsets, you can look into the option of a settlement compromise then use the money they’ll be seizing from your tax returns to settle the remainder of your loan(s). But remember, its time sensitive! Click here to find out how.

Q: Ali says: Hi there. I was wondering….I am currently in a rehabilitation program and had to sign this documents saying that I have been making payments (february will be my last one)….On the document it says that I will receive any offsets that have been taken from me by check once my 9th payment is made….does this mean I will receive my tax returns that have been offset in the past due to the default of my student loan? January 18, 2012 at 4:47 pm

A: This does NOT mean you’ll receive the tax returns that have been offset in the past. It means that they’ll return this year’s offset to you if they “accidentally” took your taxes if you file after your 9^th payment has been made. Even though they’ll return your money, you don’t want to be stuck in this situation because they’ll usually take a very long time to refund your money. To avoid this, make sure to call ED to make sure the 9^th payment is posted on their system before you file this year. It’s even safer if you hold off on filing until your loan has been assigned to the new lender. Congratulations, you are on track to receive your tax returns this year!

Q: Kyle Blanton says: They have been taking my taxes for the past four years for a student loan. I owe 1400+-. If my tax return lets say is 3000 will i receive the difference back? Thank you. January 22, 2012 at 10:56 pm

A: Yes you will receive the difference. They should only be taking the principle and remaining interest on your loan. Once those are gone the collection fees will be gone as well. Any percentage of 0 is 0, and since the collection fees on your loan is based off a percentage of your combined principle and interest, the same will apply. So what I’m getting at is, they should be taking less than $1400 if collection fees are also included in that figure. You may also want to look into a settlement to save yourself even more money.

Well I hope this helps! Most people are caught in unfortunate situations where it’s already too late. They sign a death sentence for their tax money by filing their taxes too early, and are now looking for solutions. The best situation is to stumble across this information a few months before tax season. Ideally, 9 months before tax season. Click here or on the button below if you want to learn more ways to FREE yourself from your student loan troubles.

Please leave a comment, rave review, questions, etc. at the bottom of the page. I hope to hear from you!

Sincerely,

Mr. Kay

Rogue Student Loan Collector

The Confessions of a Student Loan Collectors – Visit:www.FreeStudentLoanStuff.com to get the most shocking truth about defaulted student loans. .