How Can We Stop the Government From Taking Our Money For Student Loans? – Tammy


Dear Steve,

My husband had a student loan in 98 we filed bankruptcy and it was just over from 5 years ago now they are garnishing his pay 15%. The school closed 2 years after he took out this loan. They took his taxes how do we get copies from back in 98-2001? How do we more importantly get this stopped from the garnishment? isn’t there a statue of limitations?



Dear Tammy,

It sounds to me as if we are talking about issues surrounding federal student loans. Stopping the garnishment is an easy process. Just read The Easiest Way to Stop a Student Loan Wage Garnishment – Loan Rehabilitation.

And getting back copies of tax returns can be accomplished with IRS Form 4506.

And of course the easiest issue to deal with is preventing a tax refund intercept. You can stop it by adjusting withholdings so at the end of the year you are breaking even and not getting a refund. It will also put more money in your pocket each month.

The bigger issue here is the head-in-the-sand approach to dealing with the old student loans is not a winning strategy. It’s time to start participating in a plan for a solution than just letting the system do what it is going to do. If you need help coming up with a plan, consider contacting debt coach Damon Day. He’s a very smart guy that works with people to create comprehensive solutions to tough problems.

When it comes to debt from federal student loans, there is no statute of limitations.

The issue about the school closing is interesting. It’s not clear if the school closed shortly after he graduated or attended. If so, he might have been eligible for a closed school discharge.

After so much time passing it might be hard to gather all the details to move forward with things like the closed school discharge and loan forgiveness, but it is worth investigating.

See also  GCFS is Garnishing Me Again. Can They Do That?

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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