WHAT IS A TAX OFFSET?

Tax refund offsets are authorized reductions to tax refunds that the tax filer may be entitled to, but which are not paid to them since they have past due debts.

A tax refund offset occurs when there is a past due debt, in this case a past due campus based loan payment. The tax refund is offset by the Treasury Offset Program

Read below to learn which borrowers would qualify to receive a tax offset letter.


QUALIFICATIONS

The borrower's loan must meet ALL of the following qualifications:

  • Loan is not in grace or repayment (1a) OR
  • Loan is not pending cancellation due to death or disability (1b) or pending bankruptcy
  • Loan is not in a hardship deferment or hardship billing ‘interest only’ status (1c)
  • Loan is more than 5 months past due OR
  • Loan does not have a good address OR
  • Loan Accelerated (defaulted)
  • Total amount due is greater than $0

Additionally, the borrower's loan must meet AT LEAST ONE of the following qualifications:

  • All of the borrower’s loans were not selected for the offset program in the previous year.
  • At least one of the borrower’s loans had an offset payment applied in the previous year.
  • The aggregate total amount due at the borrower level is greater than or equal to $1000.00 and the borrower’s primary address and/or billing address is a California address.
  • The aggregate total amount due is less than $1000.00, a monetary transaction has been processed against one of the loans in the last five years, and the borrower’s primary and/or billing address is a California address.