I have a Student loan forbearance. Can my tax refund still be taken by goverment? I got approved for a hardship forbearance on my student loan.Can the government still hold my tax refund to go towards my balance due on my loans or will i get my refund because i didn’t default on my loan

jessie replied: "No not if you are on forebearance. I am currently on forebearance and have been for a few years now and they do not take my refund."

Mary Anne replied: "No. The government will only take refunds when the loan is in default. Since you were very smart and applied for a forbearance instead of not paying the loans, your refund will not be taken."


Domino replied: "the interest doesn’t stop when you do that. the last thing you want to default is a student loan that can ruin your credit faster than anything. plus it will help you get a better loan with less debt. work on paying that off asap. you will lose money by saving it because you can;t get more than 5% on savings while paying 8% on the loan"

cesquaq replied: "no. make payments and save. you might have to tighten the personal budget A LOT, but if you’re set on buying , you got to do what you’ve got to do. anyway are you sure you want to but when you first get there? the buying market stinks right now and you should live in a neighborhood before you buy there."

Mark T replied: "Sounds like a couple of things.

Sounds like you need to eliminate your debt.

And perhaps be a little more realistic about your moving day, This might not be what you want to hear, but unless you have a cushy job waiting in the bigger city, 6 months isn’t sounding terribly realistic.

Unless you are in a contract employment position and will be compelled to move, you need to do a couple of things.

Get a hold of the book "All your worth".

It’s a lifesaver and totally worth whatever I paid for it.

1. Get your regular monthly expenses under control rapidly.
2. Get your discretionary spending down to an absolute
minimum cancel the double up satellite tv, the gym membership nobody ever uses.
3. Setup an emergency fund, about 1000 bucks to cover unexpected things, (late rent, phone bills, flat tires etc).
4. Sock away a couple of months salary for the possibility of unemployment (at least)
5. Start taking those savings and ATTACKING your debt.

Attack your credit cards first, pay them off completely as aggressively as possible.
Then attack your student loans, once you have those eliminated, you will you are in the "home" stretch.

You can use the newly liberated cash for a "house" fund. If you have money in the house fund already, pay off the debt with that, and focus on getting r of interest bearing debt, which screws almost EVERYONE.

See :
Read :

See :
Read :

What Loan company will take over my federal student loans when the loans are in forbearance? What Loan company will take over my federal student loans when the loans are in forbearance so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don’t know the name of the company.

Dane replied: "barack obama, then you will have to serve in the military for 10 years to pay it forward, you ready?"

elwanda replied: "No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.

If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.

Try this site

Free College information on financial aid for students, scholarship, student loans and more."

How do I get a forbearance on my student loan? I have student loans through Sallie Mae, I can no longer make payments at this time because I lost my job. How do I go about getting a forbearance, can I call them and they can process the forbearance over the phone?

Caliban replied: "You are not alone in this situation. I know many people with the same dilemma. Call Sallie Mae and describe the problem and ask for either a forbearance form or a modified payment form. The forbearance can be continued if necessary; but, you have to have good proof. A modified payment schedule can also be sought by you. You can pay interest only, half payments or whatever amount of payment you can afford. That can be changed as needed also.
Also, if you have several loans ask if they can be consolidated at a cheaper interest rate.

The same things apply to Direct Loans for education."

chrisss replied: "Yeah call them and talk to them about it, they’ll send you paperwork to sign officially"

Can you be granted a forbearance for a student loan more than once? I have a few student loans through sallie mae, and they are currently in forbearance. my forbearance period ends in may and i won’t be able to make my payments then. can i apply for forbearance again? or do they only offer it to you once?

inkblot replied: "Yes, you can although you will have to meet certain requirements. However, if you did meet them before and have a forbearance then you already met some requirement. Give ‘em a call. Also, if you’re on disability you may qualify for a complete discharge."

Can student loan interest be used as a tax deduction if the loans are in deferment/forbearance? I know that student loan interest can be deducted.

My student loans are all either in deferment or forbearance. I’m accruing interest on some of them, but I haven’t actually paid any interest yet. Can I deduct the interest that accrued?


v b replied: "$0 paid, $0 deductible."

TaxGurl replied: "You can only deduct interest that you actually PAID during the tax year, not the interest that is accruing. Sorry to be the bearer of bad news but you have to wait until you start making payments on the loans to be able to take a deduction for any of the interest."

Judy replied: "No, you can only deduct the interest when you actually pay it, not when it accrues"

What kind of documentation would I need to request a forbearance on my student loan? I’m not actually done with school yet. I had to take time off due to health reasons (I was diagnosed with bipolar disorder and was just doing very poorly). I’m going back this fall, hopefully. I’ve been getting bills. At the moment, I don’t make enough to make loan payments. My income is barely enough to pay my rent and utilities. They sent me a forbearance request form so I’m going to fill it out and mail it back. Do I need to send any additional paperwork or should I just send it in and see what happens? Are they picky about granting forbearances? This is a government loan, if that makes any difference. This is causing me great anxiety so any answers would be appreciated.

foxiegixxergurl2004 replied: "If they sent you the request for forbearance and you have returned it…then they should notify you by mail if you have qualified and for how long the forbearance is good for. I have had to do this recently myself & I got a response rather quickly!"

scrappysmom replied: "If u are requesting forbearance due to income..they may ask for proof of how much u make (mine did).. If it’s because of illness, u may need a MD’s note.. Don’t auto send it in..it will get lost. If they need verification, they will ask u for it.. Most lenders will grant forbearances..they would rather do that then you not pay them.."

quake1920 replied: "If it is a government loan whomever is the servicer of your loan should have a website which you can look at faq and see what the qualifications of granting a forebearance is. I have asked for one in the past and I had to give a reason and my response was financial difficulties. I didnt have to provide any other documentation. It was granted for 1 year."

KyFADirector replied: "I have done several forberances and they would have let you know if documentation is needed, usually with a forberance it is not. If you were attempting a defferment that is a different situation and would need documentation. Just complete the form and mail it in but be sure to continue to make any payment you can until you receive information the forberance is in effect."

Yvette B yvetteb replied: "no worries, they are not picky about granting your request for a forbearance.

they just want a letter, telling of your hardship, requesting a forbearance , have it notorized and mail it certified, RRR

easy as pie :)

next time, use scholarships/ grants only. loans suk. on lyour down time (from your medical) practice your essays.

try to aim for grants/scholarships more… they are not to be paid back. its confusing sometimes, but just keep applying.

every big (and small) company you see (manufacturer, orgs, corps and groups also) all have grants and scholarships they hand out like candy.

heres a link with a HUGE amount of some available. some you will need to copy and paste into a new window. also, fastweb (take the time to fill it in) will search databases and get back to you with a list of scholarships you qualify for.

Also contact all mens, womens associations in your state, they almost always have grants & scholarships. What ever field you are going into, contact the orgs, associations etc for them; they too always have scholarships. Research and dig, call then write. Its all worth it.

OVER apply; it doesnt hurt to have too many, and the extra funds can help with housing.


STATUS of your gov loan or aid:

if you don’t have a PIN yet (for your loan / aid status) apply for one:


how do I get a deferment or forbearance when a student loan company wont let me? I am currently in grad school and my undergrad student loans was sold to a company without my knowledge and I am now trying to get a forbearance or deferment and they are not letting up. On top of that I am trying to get financial aid for Grad school. I cant because I have to get my loans out of default. Please help

Found-1 replied: "Once you go into default, the rules change regarding student loans. They aren’t obligated to give you those mandatory forbearance’s or even keep your interest at a reasonable amount. Once you go into default, they will hike your interest, charge exorbitant fees and take your income tax refunds.

The best thing you can do is to (if they are federal loans) do something called "Rehabilitate" your loan. Its a gov program where basically you make 6 -12 months worth of reasonable and timely payments and then you are issued a new loan.

This way you can go to grad school on fin aid. You will need to wait on grad school for a year or so, unless you just have cash laying around to pay for it. But in that case, I would use it to pay down the loan, rather than grad school."

If my consolidated student loan is in forbearance, will I still get an economic stimulus check? I recently applied for forbearance on my consolidated student loan. The forbearance is until 06/2008. Will I still get my stimulus check on time? (and yes I do qualify for the rebate)

Forbearance on a student loan with a cosigner? my mom cosigned my student loans with me and i am now coming into repayment and am considering deferment or forbearance. do i need her consent or anything like that in order to do either of these things?

NotAnyoneYouKnow replied: "No.

The loan is your responsibility, so you get to apply for your borrower benefits.

The loan becomes your mother’s responsibility the day that you stop paying. Given the rather precarious financial risk that you have put her in, it would seem that it would be the responsible thing to consult with your mother on any matter relating to the payment of this loan.

Good luck."