Avoiding a student loan from going to default can be a step, and can be done with consolidation of the student loans. Per Bruce Mesnekoff, this will be a good step and consolidation sought, and the student borrower should talk this out with the loan collector and student loan provider. When all the student loans are consolidated, and can be likely with a new federal lender, the loans will be out of default, and the tax offset avoided.
Rehabilitation of the student loan on default is also another option that the borrower can do, to avoid the tax offset, per Bruce Mesnekoff. The student borrower should also talk this out with the loan provider, and once this is approved and new repayment scheme is made, the student loan will be back to good standing and the tax offset avoided.
What is most important is that the student loan should not go on default, or this is paid in full but can also be very difficult, with the large amount needed for this. What is sad is that the spouse’s tax refund will also be offset, if they file their taxes jointly. Per Bruce Mesnekoff, the borrower should not let this happen, the student loan going to default because there are also options that can be done, to avoid this tax offset or even the wage garnishment. Student loan consolidation is one good option, and can be availed of, and the student loan consolidation repayments can even be with the lower monthly payments.
The tax offset is legal, and the government will do this, to cover for payment of student loansthat are on default. Thus, the student borrower should take steps to prevent the loan from going to default and tax offset also avoided, and there are options that can be undertaken, according to Bruce Mesnekoff.
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Student Loan Help Center General Manager Bruce Mesnekoff joins us to Discuss the Student Loan Situation in America
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