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Can my federal tax refund be levied?

Englewood, NJ |

I am having tremendous financial problems due to medical problems. I've looked into filing bankrupcy but because my Mom has a rental property in my name I was told that that's not possible. My main concern is can the government levy my federal refund for my student loans? And if they can do they do it on the sly or will I had to have already known?

Attorney Answers 3


  1. Yes, the government can levy your federal tax refund for student loans and this happens more often than you might think. So why are you continuing to overwithhold? Hope this perspective helps!


  2. If you have federal loans that are in default, the government should be able to levy the refund and apply it to your default. However, if the student loans were private, the government wouldn't levy your refund, unless they were under a court order.


  3. A student loan borrower who is in default on his or her federal student loan may see a tax intercept. The Department of Eduction notifies the IRS and then the IRS will notify the taxpayer. At that time, there are some options to address the tax intercept before it actually become permanent. The IRS will notify the taxpayer of the options/responses available to the federal student loan borrower.

    Disclaimer: Nothing stated herein is legal advice. For legal advice, consult an attorney; I am not your attorney at this time. This response may constitute ATTORNEY ADVERTISING which has not been approved by the Supreme Courts of New Jersey or Pennsylvania or the Court of Appeals of Maryland. I am a federally-designated “debt relief agency” that provides, where appropriate, relief under the U.S. Bankruptcy Code.

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