Student Loan Offsets 2021 (2020 Tax Year)

[Tiffg]

For those concerned about whether or not student loans would be offset this tax season or not I just wanted to share a part of the email that my husband just received from the US Dept. of Education:

Your current federal student loan flexibilities have been extended. The current 0% interest rate, suspension of payments, and stopped payment collections on federal student loans owned by the Department of Education (ED) will now continue through at least Sept. 30, 2021.

Visit StudentAid.gov/coronavirus regularly for the latest information on these flexibilities and when they are scheduled to end.

Here’s what this means:

• You aren’t required to make payments on ED-owned student loans until at least after Sept. 30, 2021, and no interest will accumulate.

• Collection activities, such as Treasury offsets and wage garnishments, will not resume until at least after Sept. 30, 2021.

• If your loan is in the process of being rehabilitated, you will continue to receive payment credit for each month during the suspension period when you would have otherwise made a payment under the terms of your rehabilitation agreement.

[Amanda]

So I’m a student this year, first time and never got a alert before saying partially or all can be taken.. offset.. yada is that why it says that? And so nothing should get taken until sept 2022?

[LolaR]

@Mrsbarkley1030

Did you receive the full amount without an offset? I’m planning to call tomorrow to see if I can get them to cancel the injured spouse form.

[Tiffg]

@mrsbarkley1030 I agree. This is too stressful to go through each year lol. My husband has tried to work out deals several times but they make it so hard to get out of default.

[Stacey]

@tiffg Updated yesterday to a DDD of 3/4. I was just accepted and approved on the 25th so I am definitely getting ahold of the DOE and seeing how to get out of default 😅

[Lola R]

We filed IS as well! I wish they gave more info than just random articles. I wonder if we can call and cancel the injured spouse? There has to be a way to avoid them processing those this year.

[Tiffg]

@mesbarkley1030 the offset line did say he had a debt. I know it’s hard not to worry but please try. Trust me I understand.

[Stacey]

@tiffg was he still showing as having a debt on the offset line during this? I am and I think that is why I was so concerned lol. Sorry for blowing you up on the questions. We just found out I need a complete bathroom gut job because of safety concerns so I am a bit stressed all around 😅

[Tiffg]

@mrsbarkley1030 I checked the offset line for my husbands student loans like every two days lol. You will not be offset but I do understand because I didn’t believe it until yesterday.

[Stacey]

@tiffg congratulations! I know they haulted it but hearing my debt on the offset line still makes me question not filing. So happy to hear it came through for you. Accepted today so just a waiting game now!

[Tiffg]

@mrsbarkley1030 I second guessed myself immediately and up until yesterday when I did actually receive my refund. We are so used to not trusting the IRS…they came through this time.

[Stacey]

@tiffg did you get your refund? I didn’t file either because of the pause in collections and started second guessing myself lol

[Tiffg]

Oh no @Rachel. I took a calculated risk after watching what was going on in Congress with student loan flexibility and took the chance and didn’t file IS. I worried instantly after doing it until I saw that email which was nearly a month! I just would have had to go back and file and mail the IS form if they offset it. I have a DDD for tomorrow.

Filed 1/11
Accepted 2/10
DDD 2/24
EIC and CTC

[Rachel]

I had already filed injured spouse when this came out :(

[Author]

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