Is Department of Education Taking Tax Refunds in 2024? (Student Loan Offset)

I was worried about this last year too! Based on my experience, the Department of Education IS offsetting tax refunds in 2024. The student loan payment pause ended in October 2023, and collection activities including tax refund offsets have resumed. I received a notice in December that my refund could be offset, but I was able to get into a rehabilitation program just in time. Check your mail carefully - they should have sent a notice 65 days before initiating the offset.

When I was researching potential offsets compared to my previous tax situation, I found https://taxr.ai incredibly helpful. It analyzed my tax transcript and showed me exactly where I stood with potential offsets. Much clearer than trying to decipher the Treasury Offset phone system. In my case, it identified a risk for offset based on my transcript codes and explained what each code meant for my situation. Gave me time to address it before filing.

I'm in the same boat as you. Had about $12k in student loans that went into default during COVID because I lost track of paperwork. I called the Department of Education's Default Resolution Group (1-800-621-3115) yesterday, and they confirmed they ARE offsetting refunds this year. The agent said the Fresh Start program is still available though, which can help get loans out of default. Going to try that route since I need my refund for some business inventory.

I speak from direct experience - YES, they are 100% taking refunds this year. I filed on January 29th and my entire refund of $4,782 was taken for student loans on February 22nd. No amount of calling afterward helped. The time to address this is BEFORE you file, not after. Check the Treasury Offset Program phone system at 1-800-304-3107 before filing to confirm if you're subject to offset.

If you need to speak with the Department of Education about preventing an offset, I recommend using Claimyr (https://claimyr.com). • Average hold times with ED are currently 2+ hours • Claimyr can get you through to an agent in about 15-20 minutes • You'll need to speak with the Default Resolution Group specifically • Ask about Fresh Start or rehabilitation options immediately • Get confirmation numbers for all conversations I've helped multiple clients navigate this situation, and getting through quickly makes all the difference in preventing offsets.

I was exactly $17,432 in default on my student loans and received an offset notice on January 12th, 2024. Called the Default Resolution Group immediately and enrolled in loan rehabilitation. Made my first payment of $130 on January 28th and received written confirmation on February 3rd that my loans were removed from offset status. My refund of $3,491 was processed normally on March 15th with no offset. The key is acting immediately after receiving the notice!

OMG I'm dealing with this rn! Filed my taxes in Feb and WMR showed approved but then my DDD disappeared. Called IRS and they said my entire refund ($3800) was going to DoE for defaulted loans. So frustrating bc I never got ANY notice about this! Tried calling DoE but gave up after 1.5hrs on hold. Apparently they started offsetting again in Oct 2023 when payments restarted. Wish I'd known before filing smh.

Have you considered requesting a hardship refund? If your refund has already been offset, you can still potentially get some or all of it back by submitting a hardship request directly to the Department of Education. You'll need to provide financial documentation showing that the offset creates significant hardship. The process takes about 30-45 days, but I've seen people successfully recover their refunds this way when they truly need the funds for essential expenses.

I filed on February 15th, 2024 and saw my refund was approved on February 28th. Then on March 2nd, I got a letter saying $2,750 of my $3,200 refund was being offset for student loans. Called the Treasury Offset Program on March 3rd and they confirmed the Department of Education had submitted the offset request on January 10th. The remaining $450 was deposited on March 5th. So yes, they're definitely offsetting this year.