Can my Tax Refund be Taken for Student Loans?

Yes, if you have defaulted on your federal student loans, the government can intercept your tax refund through the Treasury Offset Program (TOP) to collect the amount you owe. This process is called a tax refund offset and is one of the ways the Department of Education recovers defaulted student loans.

Who is at Risk of a Tax Refund Offset?

Borrowers with federal student loans in default—meaning they haven’t made a payment in 270 days or more—are at risk of having their tax refund taken. This includes loans held by the U.S. Department of Education or a guaranty agency if you have older FFEL loans.

How Can You Avoid Losing Your Refund?

• Check Your Loan Status: Log in to StudentAid.gov or contact your loan servicer to see if your loans are in default.

• Call the Treasury Offset Program: Dial 1-800-304-3107 to check if your tax refund is subject to garnishment.

• Explore Your Repayment Options: Borrowers can get out of default by:

  • Loan Rehabilitation – Make nine on-time, affordable payments within 10 months to remove the default from your record.

  • Loan Consolidation – Combine your defaulted loan into a new Direct Consolidation Loan and agree to an Income-Driven Repayment (IDR) plan.

  • Set Up a Payment Plan – Some loan holders may allow you to enter into a reasonable and affordable repayment plan to prevent further collection actions.

Act Now Before Your Refund Is Taken

With the Fresh Start program now expired, borrowers can no longer rely on temporary protections. If you are in default, taking steps now can help you avoid garnishment and regain control of your student loan situation.

Need Help? Student Debt Solutions can guide you through your repayment options. Log in today to explore the best path forward!