A student loan tax offset is the tax refund that the government offsets, and this is to cover for student loan payment for the loan on default, but there are also solutions that can be done, according to Bruce Mesnekoff, the nationally recognized expert in student loan management and consolidation. The key here is the federal student loan on default, thus should not be allowed to be in this situation, and there are steps that can be done to help the student borrower keep the loan current. If the student loan is paid fully, there will no longer be the tax offset, or the loan is rehabilitated and a new repayment scheme is laid out and actually done, the student loan will go current, thus no tax offset that will be made. A tax offset will not really happen if the student loan is current and not on default, thus the key is avoid the loan going to default.
Default on student loan will happen if no payments are made or missed straight and delinquent for nine months. Once the loan is already on default, the government can start initiating steps in the student loan collection, like wage garnishment or tax refund offsetting, per Bruce Mesnekoff.If the student borrower is married and both of them file their taxes jointly, the tax refund of the spouse can also be offset by the government, and this is also to cover for the other spouse’s student loan payment. This should not happen, and there are solutions to this, according to Bruce Mesnekoff. He is an experton student loan consolidation, and consolidation is actually also a solution to this student loan problem.
A tax refund offset is actually not good for the student borrower because this is money that can be of great help in coping with the family’s financial difficulties. Since the loan not going to default is the key to avoid this future problem, the borrower should initiate things to avoid this default and start talking to his or her student loan provider and collector, per Bruce Mesnekoff. There are still options that the student borrower can do, like rehabilitation of the student loan and coming up with new repayment schemes or the loan consolidation previously mentioned. What is just to be done is to talk and coordinate with the loan provider, and solutions may be laid out perfectly.
Since default on the student loan is the cause of these many bad things, like wage garnishment or tax refund offsetting, this should be avoided and prevented from happening. What is good is that there are also solutions to this and can be done, according to Bruce Mesnekoff.