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.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

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Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

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Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

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The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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