I’m in a Serious Bad Way Financially With All the COVID Crap


Dear Steve,

I started school in maybe, 2010. Not sure of the exact date. I became homeless and was unable to continue schooling due to circumstances. I had received phone calls from the collection agencies and agreed to pay a monthly fee. Shortly after I made the agreement, I went to jail for 6 months in county. Got out, worked, tax refunds was garnished. Ended up with a tdc # and was there for 8 months in 2013-2014.

The beginning of 2015, I went to prison for 2 &1/2 years. I filed taxes last year, (for 2018) and I’ve been gettin the damn “we need 60 more days to review your account” crap for a year. I did receive a letter from the irs for the 2019 tax year saying they took my entire refund to pay it.

So. The question is, am I able to get this loan removed due to multiple incarcerations and partial garnishment? I’m in a seriously bad way right now and with all this covid crap I could really use the cash. Help me?! Please?!



Dear Jesselyn,

There is no process to have a federal student loan forgiven because you only repaid part of what you owe and were in jail.

But I think I have some good news for you. The fact your tax refund has been intercepted indicates your student loan was a federal student loan.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

The surefire way to not get your tax refund intercepted is to not get a refund. You can adjust your tax withholdings so at the end of the year you owe a little or get little back. This puts more money in your pocket each month when you need it most.

If you have never rehabilitated your federal student loans you should look at that immediately. You only get one chance in the life of the loan to do this so don’t waste it.

With loan rehabilitation, your loans will be brought current and the monthly payment will be based on what your income can support.

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The Department of Education says, “To enroll in loan rehabilitation, you must first contact your loan holder to determine if you are eligible to do so. If your holder verifies that you can enroll in the program, it will determine your reasonable and affordable payment amount, and send you a written rehabilitation agreement within 15 days. If you choose to accept the agreement and enroll in loan rehabilitation, you must sign and return the agreement.” – Source

For more on loan rehabilitation and the details on how it works, click here.

Let me know in the comments what you decide to do. The process I laid out should handle the issue for you.

Damon Day - Pro Debt Coach

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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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