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Wages Garnished and Tax Refund Held Over Student Loans


Dear Steve,

About 20,000 of student loans in garnishment. Have been paying $400 for 18 months. Company will not give me any copy of how money is being applied to debt. Tax return held, assuming that it goes to this company, but cannot get confirmation on that either.

I was able to consolidate the other half of my loans and those are good. I was told at that time that the ones in garnishment were not eligible for re-consolidation as you advised another on your website. Please advise.



Dear Genese,

Loans in default are not eligible for consolidation. You should rehabilitate those loans and then they will be eligible to consolidate. You should read The Easiest Way to Stop a Student Loan Wage Garnishment – Loan Rehabilitation.

Once the loans are rehabilitated they will be eligible for consolidation, the garnishment and tax refund intercepts will stop.

Quite frankly, the easiest way to not have your tax refunds intercepted is to not get a refund. You can adjust your withholding so you get more money in your paycheck and not a big refund.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Steve Rhode

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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