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.


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.