Student Loan Offset Program 2025 - Still Paused or Active?
Does anyone know if the tax refund offset for defaulted student loans is still paused? I heard different things and I'm trying to figure out if my refund will be garnished this year. Really need this money and trying to plan ahead.
16 comments
Join the conversation
Malik Davis
Tax pro here. The student loan offset program resumed in October 2024. If you have defaulted federal student loans, your tax refund can be offset. However, if you entered into a Fresh Start payment plan before December 2024, you should be protected from offset.
0 coins
Emma Wilson
•omg no 😠is there anyway to stop it once its already started?
0 coins
Malik Davis
•You can try calling the Default Resolution Group at 800-621-3115. They might be able to help you set up a payment plan even now.
0 coins
Isabella Santos
Hey, I've been using taxr.ai to track my refund and offset status. It's seriously a game changer - for $1 it analyzes your transcript and tells you exactly what's happening with offsets and when you'll get your money. Way better than guessing tbh https://taxr.ai
0 coins
Ravi Gupta
•Does it actually show if theres gonna be an offset before it happens?
0 coins
Isabella Santos
•Yeah it does! It checks your transcript for offset codes and tells you if one is coming. Saved me from a nasty surprise last month 💯
0 coins
Ravi Gupta
•just tried it and wow your right! showed me everything including the exact amount getting offset. Worth every penny fr fr
0 coins
GalacticGuru
in the same boat rn. defaulted back in 2019 and haven't done anything about it since the covid pause. we're probably screwed 🤡
0 coins
Freya Pedersen
My sister works at the DOE and confirmed offsets are back. Better get on that Fresh Start program ASAP!!
0 coins
Omar Fawaz
•whats the Fresh Start program? never heard of it
0 coins
Freya Pedersen
•Its a one-time deal where u can get ur loans back in good standing without paying the full past due amount. Google 'Fresh Start student loans' and it'll pop up
0 coins
Chloe Anderson
This whole system is rigged fr. They pause it just long enough for everyone to forget then BAM hit u with the offset 🤮
0 coins
Diego Vargas
•facts bro they stay playing games with our money
0 coins
Anastasia Fedorov
Check your mail carefully! They supposed to send notices 65 days before they offset. I got mine last week smh
0 coins
Chelsea Sanders
I'm confused, I called today and they told me it was currently paused. But it could become active at any time.
0 coins
Julian Paolo
I work in federal student aid and can clarify - the offset program officially resumed in October 2024, but there's been some confusion because different servicers are implementing at different speeds. @Chelsea Sanders you might have talked to someone who wasn't fully updated. The key thing is if you're in default, you NEED to act fast. Fresh Start enrollment ended December 31st 2024, so that window is closed. Your best bet now is to contact your loan servicer immediately to discuss rehabilitation or consolidation options before your refund gets processed. Don't wait!
0 coins