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Garnishing of Tax Return (Tax Law)

Fri, 19 May 2006 07:12:00 GMT

What is the name of your state? Pa.
Hello, 8 years ago I dropped out of business school to pursue another major. I was supposed to attend this school for a 15 month course of study but completed only 3 before exiting. I was told that I was responsible for paying back part of my government loan, which I did. Shortly after I recieved mail that I still owed on a second government loan which they wanted me to begin paying. I challenged this in writing to the government agency stating I had only attended this school for 3 months. After several more letters from them(which i ignored) they garnished my 2004 tax return(which I didn't challenge),feeling this would be the end of my debt. They then proceeded to send me a letter stating beginning in August of 2005, they would start taking 15% of my take home pay until my debt was paid off.Now, they're claiming my 2005 tax return as well. As i stated I only went to this school for 3 months and can prove it(I have my dated sign out letter) and I've already paid back in excess of 3000$. Can they legally take my tax return in addition to garnishing 15% of each paycheck. Please advise. Thankyou.

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  • Fri, 19 May 2006 07:44:00 GMT(1)
  • Quote:

    Originally Posted by cagney1

    What is the name of your state? Pa.
    Hello, 8 years ago I dropped out of business school to pursue another major. I was supposed to attend this school for a 15 month course of study but completed only 3 before exiting. I was told that I was responsible for paying back part of my government loan, which I did. Shortly after I recieved mail that I still owed on a second government loan which they wanted me to begin paying. I challenged this in writing to the government agency stating I had only attended this school for 3 months. After several more letters from them(which i ignored) they garnished my 2004 tax return(which I didn't challenge),feeling this would be the end of my debt. They then proceeded to send me a letter stating beginning in August of 2005, they would start taking 15% of my take home pay until my debt was paid off.Now, they're claiming my 2005 tax return as well. As i stated I only went to this school for 3 months and can prove it(I have my dated sign out letter) and I've already paid back in excess of 3000$. Can they legally take my tax return in addition to garnishing 15% of each paycheck. Please advise. Thankyou.

    Yes, they can. Apparently you were charged for the entire program (therefore technically you got a loan for the entire program) even though you dropped out.
    If you feel that was fraudulent somehow on the part of the school. Then you have to address that with the school. You may even have to sue the school if it was fraudulent. However, that doesn't stop your responsibility for the loan.
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