The federal government can seize certain payments to satisfy delinquent debts. The U.S. Department of Education suspended the practice until after Nov. 1.
Feb. 8 that the agency wouldn't withhold any tax refunds attributed to the child tax credit, even after May 1.
"The intent of these social safety net programs is to protect and prevent people in the U.S. from experiencing crushing poverty — not a reconciliation system for the federal government to use for the student loan portfolio," said Abigail Seldin, who runs a charitableIn 2019, the Treasury Offset Program collected nearly $4.9 billion to service debts held by the Education Department, according to a foundation analysis of publicly available data.
However, certain payments, including those of many means-tested programs, are exempt from offset. The Treasury must also provide 60-day prior notice to the debtor of the intent to offset.a candidate to oversee student loans for the Biden administration. Default disproportionately impacts borrowers of color, particularly African Americans, as well as students with children, Pell Grant recipients and veterans,Seizing tax refunds from borrowers in default would have run contrary to the
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