CFPB complaints against the Army and Air Force Exchange Service have spiked to 2x their normal rate, with consumers reporting attempts to collect debts they don’t owe—including cases where tax refunds were intercepted despite identity theft claims.
Quick Answer: Tax refund offsets occur when the Department of Treasury intercepts refunds for significantly delinquent federal student loans. To avoid future intercepts, borrowers must establish a Department of Education repayment plan or loan rehabilitation, and can prevent refunds by adjusting tax withholdings to break even.“Dear Steve,I have a federal student loan that I haven’t …
Quick Answer: The IRS can intercept tax refunds for defaulted student loans on behalf of the Department of Education, and the loan servicer can administratively garnish the spouse’s wages without court approval. Rehabilitating the defaulted loan through a repayment plan will stop future refund seizures and wage garnishments. “Dear Steve, IRS has garnished our income …
Did this conversation help?
Thank you. I'm glad you reached out.
You took an important step today. Come back any time.
Think of this as me — just in AI form. I've walked in your shoes. I filed bankruptcy myself in 1990, and in over 30 years of experience I haven't seen a situation that can't be worked through or a person who deserves judgment. Everything here is built on that experience, that research, and genuine care for you. I can't be there in person. But I can be here.
Conversations are saved anonymously. Personal details are automatically removed before storage. This is an AI — not a financial advisor, attorney, or therapist.
Not sure where to start?
Been here before?
