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Will Student Loans Take My Tax Refund In 2025?
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Student loans are back in repayment, and starting in 2025, that also means that collection activity has resumed on student loan debt. Could your student loans cause you to see your tax refund garnished?
According to data from the Department of Education, around seven million borrowers have defaulted on their student loans. Those who are in default could risk having their tax refund seized come tax time.
You might be planning on getting a tax refund in 2025 but if you’re in default on your federal student loans, your refund could be at risk. Here’s what you need to know about how tax refund garnishments work and how to stay out of default to avoid losing your refund.
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