December 17, 2021

Can FedLoan Garnish My Wages or Tax Return Refund?

Chipper Help

FedLoan is a student loan servicer that handles both federal and private loans. It is a non-profit organization that provides financial help and manages many state award programs. It can collect funds from a variety of sources to repay your student loan.

If you have loan debt with FedLoan Servicing, then you may be wondering if they can garnish your wages or tax return refund. In this blog post, you will learn answer to the question: “Can FedLoan garnish my tax returns or wages?”

Is Your Tax Refund Going To Be Garnished?

To have your tax refund withheld, you must have federal student loans that are in default. After 270 days of late payments, federal student loans enter default. Private student loans in default are not eligible for garnishment of tax refunds.

Before your refunds are seized, your loan holder will issue you a tax offset notice. This usually happens months before you file your tax return, giving you plenty of time to prepare. However, you may only receive that notice once.

How To Determine Whether Your Student Loan Will Reduce the Tax Refund?

Because federal student loan garnishments do not have to go through the courts, you will not receive a summons. The process of determining whether or not your student loan will reduce your tax refund is actually quite simple. The U.S. Department of Education will notify the IRS of the garnishment. Your tax refund will be reduced by the amount of your student loan debt.

These are the things to determine if FedLoan can tax refund:

  1. Which type of student loan is it?
  2. How much is the balance?
  3. What is the interest rate on loan(s)?
  4. When did you take out the loans, and in what academic year?
  5. What year are you filing taxes for, and what was your total income before any deductions?
  6. Do you have any other garnishments on your wages?
  7. Are you up to date on your student loan payments?
  8. Do you have a federal tax refund coming?

You can garnish your wages and tax return refund to repay your student loan debt. Still, it is important to determine if your loans are eligible.


If you have a student loan debt, then it is important to understand if your wages or tax return can be garnished. The government has been trying to ensure that those who owe on their loans are paying by any means necessary, and as such, they have become more aggressive with the collection process.

If you are currently in default on your student loans, then there is a good chance that your wages or tax return can be garnished. If you are in default, then the government can garnish your wages or tax return to try and get their money back until you either pay off your loans or rehabilitate them. The best way to avoid wage or tax return garnishment is to get back into good standing with your loans.

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