Husband's Student Loans In Default. Can we avoid tax returns being taken this year?

Posted by MrsMeow420@reddit | studentloandefaulters | View on Reddit | 8 comments

SOS. I have no experience with student loans but found myself in a situation needing to navigate them asap before filing taxes.

Quick summary and context:

- We are located in Minnesota

-I married my husband in July 2025.

-I make $65k a year, he makes $58k.

-I have a daughter in preschool from a previous marriage that I claim on taxes for the Childcare/dependent tax credit.

-Current husband has $21.5k student loans in default from years before we were together (so far no wages have been garnished):

Questions:

- Is there anything that can be done to stop them from taking our federal tax return if we file joint before April 15th? (Is it possible to get out of default by the 15th?)

- What would be the best approach, loan consolidation, income driven repayment plan, or both? And if both are needed, which do we do first?

-Because we were not married for all of 2025, can I file individually and still claim the child care tax credit for my daughter? We can have his federal return taken without much of an impact, but the child care credit is a significant amount that we don't want to lose.

Thank you in advance!

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Hopeful_Permit3899@reddit

Hey! So, just a heads up... the education department has paused wage garnishments for now, but they could totally start up again at any point. You might wanna call the Treasury Offset Program to check if there’s already something in place for his loans. It’s an automated system, so it should be pretty easy to get the info you need. Good luck!

TheZetetics@reddit

It's $20K. Am i missing something? Have your husband put his big boy pants on, make a few phone calls to the lender(s), once he reaches the right person, have him negotiate his balance from $20K down to a one off payment of 10 or $11K and boOm, problem solved. God knows both of you probably have $20K+ in car loans a piece. And if i'm not a clairvoyant, perfect, take both vehicles that are paid off, sell them, take the proceeds, pay the student loan in full, replace your sold vehicles with a $2,500 car for each of you and boOm...crisis solved. You have to be willing to make concessions with your lifestyle. Again, it doesn’t take a fortune teller to realize you both are living beyond your means (i.e. beyond your combined monthly rake), take difficult action, put together a budget, plan your dive and dive your plan. A $125K combined pre-tax household salary and you can't make that work? Incredible.

brokeboii94@reddit

The education department has held off on wage garnishment but they can start at anytime. He can do a rehabilitation on the loans to get them out of default and then apply for an IDR plan. The larger the family size the less the payments will be.

MrsMeow420@reddit (OP)

Ahhh, I didn't realize you have to do the loan rehab before you can apply for the IDR plans.
Will they still take your federal return now if you are in default?

Much appreciated!

wanderingmanimal@reddit

Case by case basis - you will have to have your husband call to sort it out.

llboydston@reddit

You can call the TOP (Treasury Offset Program) number to see if there’s an offset for his loans. It’s an automated call and you’ll enter his ss#. 1-800-304-3107.

If there’s an offset for his student loans you can file Injured Spouse (form 8379) with your 1040 and it will protect your portion of the federal income tax refund..

Competitive-Tale2726@reddit

From the Federal student aid debt resolution website:

“On January 16, 2026, the U.S. Department of Education (ED) paused collections through the Treasury Offset Program (TOP) and paused plans to resume collections through Administration Wage Garnishment (AWG). As a result, at this time, ED will not withhold tax refunds and federal and state miscellaneous vendor payments to borrowers with defaulted federal student loans.

Although these programs are paused, you should resolve your default status or establish a payment schedule to begin making monthly payments to get your loan(s) out of default.

If you have not had recent changes to your income or marital status and you want to establish a monthly payment schedule without speaking to an agent, you will need to submit both pages of your most-recent federal 1040 tax return either signed by you or stamped by your tax preparer. Submit the documents to:

U.S. Department of Education Default Resolution Group P.O. Box 5609 Greenville, TX 75403-5609”

Thank you thank you THANK YOU!!! I've been scouring their website but must have missed this.