"If you're behind on your student-loan payments, you now have more time to figure out a payment plan before filing your taxes."
"The Department of Education announced on January 16 that it's temporarily pausing wage garnishment and the Treasury Offset Program, which seizes federal tax refunds, to give defaulted borrowers more time to repay their loans."
"Once you've already filed your taxes, that process is underway. It is going to be nearly impossible to get your loans out of default before your refund would go out,"
Defaulted federal student-loan borrowers receive a temporary pause on wage garnishment and Treasury Offset Program seizures of federal tax refunds to allow more time to arrange repayment before filing taxes. Collections on defaulted loans resumed in May 2025 after a five-year pause, and default typically occurs after about 270 days without payments, exposing borrowers to garnishment and refund seizure. Filing taxes while in default could trigger immediate seizure of refunds, leaving little time to cure defaults. Borrowers who are in default have several options to begin restoring loans to good standing.
Read at Business Insider
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