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Hint: It has to do with not paying your debt.
Many people take out student loans but struggle to repay them after the fact. While it’s one thing to be late with the occasional payment, it’s another thing to default on that debt entirely. And if you wind up defaulting on a federal student loan, you could face a very unwanted consequence — having your tax refund garnished.
Chances are, you count on your tax refund to pay your bills, so the last thing you want to do is have that money taken away. Here’s what you need to know about student loan tax refund garnishment.
When do federal student loans enter default?
If you’re worried that a single missed student loan payment will cause your tax refund to be held back, don’t panic. Continue reading The Surprising Way Student Loan Borrowers Can Lose Their Tax Refunds
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