Get Out of Debt Guy

I'm in Student Loan Debt But Not Using My Degree

Posted November 11, 2014

WRAL Reader Question

I have over 60 thousand dollars in loans, I am not using my degree I am not in default I started paying Performant last October and the man said i would still get my taxes but i did not.

I have paid on the loans for a year on time i am out of default how can i stop the government from taking my taxes this year I pay through Sallie Mae now I use to pay Performant they got me out of default.


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Dear Meagan,

If you are worried about a tax refund intercept for delinquent student loans then your Sallie Mae loans must be federal student loans. Sallie Mae also services private student loans but taxes cannot be intercepted for those.

If you are out of default then there is no reason for a tax refund intercept. But of course the easiest way to avoid a refund intercept is to not get a refund. That should always be the goal of every taxpayer, to not owe too much tax or get a refund at the end of the year.

It always amazes me how people have too much tax taken out of their paycheck each month when they need it most only to look at the IRS giving you back your money at the end of the year, as a windfall. It's not. It's you letting the government hold your money without paying you any interest. But I guess that's a bit of a rant and an admitted pet peeve.

So if these are truly federal student loans and you are struggling, everything you need to lower your payment is right here in this guide.

Before I go, here are three things you can do right now to tackle your issue. Click here.

Steve Rhode
WRAL Get Out of Debt Guy

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About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.