Get Out of Debt Guy - Steve Rhode

How to Prevent a Tax Refund Intercept on a Defaulted Student Loan


“Dear Steve,

I recently inquired to see if my defaulted student loan would offset my tax return. The FMS 800 number stated that my tax return may be offset for my debt to the US Department Of Education.

My question is my husband and I file a joint return and we are now in a position to take care of this debt. However, if we try and rehabilitate the loan before we file will our tax return still be offset to pay this debt. I haven’t received any notice in the mail about this offset yet.


Dear Sarah,

Why not get started on rehabilitating your student loan right now and request an extension on filing your tax return. That way the loan should be back in good standing before your return is filed and refund sent.

An automatic extension to file your taxes is available online here. Once you file this, your tax return will be due by October 15, giving you the time to deal with the student loans.

More information on student loan rehabilitation is available here.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!
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