Student loan borrowers say the government is unfairly taking their tax refunds — here’s what they are doing about it

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Thousands of student loan borrowers who seriously need their tax refund money now aren’t getting it because the federal government isn’t following its own rules, a new lawsuit alleges.

Thousands of student loan borrowers who seriously need their tax refund money now aren’t getting it because the federal government isn’t following its own rules, a new lawsuit charges.

The case, filed Friday, echoes a recent lawsuit alleging that some student loan borrowers are wrongfully getting their wages garnished while the coronavirus outbreak continues. But the Arvada, Colo. mother of two received an April 8 notice from the government saying the entire refund was going towards the $23,000 she still owes on her student loans. Cole earned an associate’s degree to become an X-ray technician, but her lawyers say she’s home raising the couple’s 6- and 9-year-old children right now.

“What’s happened to Kori and her family is what the Congress tried to prevent. They were counting on their refund to pay their bills,” said one of the attorneys on the case, Jeffrey Dubner of the Democracy Forward Foundation, a legal services organization that’s sparred with the Trump administration. Attorneys at the National Student Legal Defense Network, an organization advocating for borrowers, are also representing Cole in the case.

Cole is one of many borrowers missing out on their refunds, the lawsuit says. Treasury Department information allegedly shows it offset $18.8 million from 11,049 federal tax refunds and sent the money to the Education Department, the lawsuit said. There were approximately 390,000 defaulted borrowers subject to wage garnishment as of March 13, federal government lawyers said in court papers. That number dropped to 54,000 people and then to 12,000, the attorneys said in court filings.

 

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If you overpaid your student loan garnishments, expect a refund.

You can thank Obama & Clinton for this mess 😉. Good luck you all 👍🏼

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