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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default IRS Garnishment of Student Loan Debt

    A student took out student loans to enroll in a legal assistant course. Before the student finished the program the school discontinued that certification, and told the student that she would have to complete the certification in office administration. Six years later she started to get IRS garnishments of her student loan debt, with their taking her tax refunds to pay the loans. Can she avoid paying the loans due to the change in her program?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: IRS Garnishment of Student Loans

    With the passage of time, it's a bit late to try to take action based upon the changes in the school's programs. And frankly, schools generally reserve the right to change the degree programs they offer or courses they offer based upon interest and enrollment.

    With this being an IRS garnishment, odds are the loans were either obtained directly from the Department of Education, or are federally guaranteed student loans where the Department of Education paid off the lender after you defaulted. In either case, the Department of Education is going to be focused on getting its money back, not whether or not your school mistreated you back when you were still a student.

    In cases of extreme hardship it may be possible to discharge (or partially discharge) student loans in bankruptcy, but few borrowers can meet that standard.

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