My Tax Refund Was Seized for Student Loans! What You Can Do and How a Tax Advance Can HelpGetting a tax refund is exciting. It feels almost like free money, and is especially useful if you struggle to make ends meet and tend to live paycheck to paycheck. What happens then when you find that your refund is being seized in order to pay back student loan debt? Sometimes this is inevitable, but it may also be a mistake. There are things you can do if you find your refund is being seized and a tax advance loan can be one way to help you get through this ordeal.
How Can my Refund Be Seized and How Can a Tax Advance Help?
The U.S. Education Department is allowed to seize your tax refund through the Treasury Offset Program. However, they can’t just take your money because they feel like it, or if you are in good standing. Your refund can be seized if your loans are in default. That means you are behind on payments by 270 days or longer. It can be a real shock to have your refund taken, and maybe you were planning to use it for your student loan debt anyway, but it is surprising not to be given the choice. If you were counting on the money to get through the next week or month, the seizure can present a real problem. A tax advance can help by providing you with the missing money that will tide you over until your next payday.
In Addition to Using a Tax Advance, You Can Contest the Seizure
If you are in default on your student loans, and the government plans to seize your refund, you should get a letter in the mail with advance notice. If you miss the letter, you may be in for a big surprise. If you believe that the seizure is a mistake, you can contact the Department of Education to appeal the seizure. You may have to prove that your loans are not in default in order to avoid the seizure or to get your money back. This can take time, and even if the seizure was a mistake, you may not get your money back soon. In the meantime you can use a tax advance to get a quick infusion for cash for bills and other regular expenses.
To Avoid a Seizure, Use a Tax Advance to Stay out of Default
When tax season approaches and you think you may be in danger of defaulting on your student loans, you can take some steps to avoid that and a seizure of your tax refund. A tax advance is one way, which you can use to make a payment on your debt that will prevent you from being in default. This can avoid the seizure and buy you some time until you can find a more permanent solution to paying down your student loan debt.
How to Get a Tax Advance
The good news in all of this is that getting a tax advance is actually very easy. All you need to do to qualify is fill out a short online application or use a mobile app on your phone. Requirements for approval are reasonable and most people do get approved. The cash you get can help you make it through this tough period and cover costs while you figure out what to do about your student loans and your missing tax refund.
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