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Posted in Student Loans
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AdrienT

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HELP! College debt, state taxes garnished!
I attended college for one year on campus. The second year, I had to move back home with my mother (who is disabled) and younger sister to help take care of them. My plan was to work and take my classes online. Things got really rough and that plan didn't work out. Now I owe the school $3,326 (Original Amount: $2,492). This is what my credit report reads....

I emailed the student account services and this is what they told me: "You had an official resignation 9/30/13 and were not entitled to all your financial aid. Per the Return to Title IV Policy, the school had to return $990.00 to the UNSUB FEDERAL LOAN PROGRAM and $1,086.00 to the SUB FEDERAL LOAN PROGRAM. You also received a refund check in the amount of $2,967.55 which you were not entitled to all of the funds"

I received a letter from my state saying it is now in collections by the state. This year's state tax return was garnished because of this and I'm wondering what is my next step? Could this be removed from my credit report while I make payments or is that unlikely to happen?

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Top Contributor
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You will need to get this paid off. No it will not be removed by making payments.

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