Student Loan Garnishment 2025. Federal tax refunds can be garnished by the u.s. After september 2024, the best way to stop student loan debt collectors from taking your refund is to address the default before filing your tax return.

The biden administration is preparing to reopen access to two critical programs in december that would provide additional pathways to eventual student loan forgiveness. This can happen when you’ve defaulted on your student loans but are owed a tax refund.