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Under the Treasury Offset Program, the Social Security Administration can withhold up to 15 percent of your Social Security income to cover delinquent student loan debt.
Federal nontax debt (like student loans) owed. What To Do if the IRS Stops or Takes Your Refund? ... you can call the Treasury Offset Program call center at 1-800-304-3107 for non-federal tax debt ...
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Tax refunds are intercepted with the purpose of forcing citizens to comply to their required debts. If one has student loan payments, child support payments, or worker's compensation payments that they have not fulfilled, then their refund will be intercepted and put towards the payments of those obligations. [7]
From 1994 to 2015, according to ECMC, they returned $4.3 billion to the U.S. Treasury. [2] According to ECMC the company works to reduce student-loan default rates and provide resources to help students repay their loans, and promotes financial literacy and student success in higher education. [3]
The Voluntary Flexible Agreement (VFA) was created by the United States Congress in 1998 during a reauthorization of the Higher Education Act of 1965.The VFA enables Federal Family Education Loan Program (FFELP) guarantors to develop programs and techniques to help borrowers avoid student-loan default and all of its negative consequences.
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