student loan deferment forbearance
Do you think I will receive my stimulus check?
Financial hardship forced us to defer payments on my husband’s student loans. We didn’t know that we had defaulted since we thought that the forbearance paperwork went through. We learned the hard way that you only get a couple deferments/forbearances — then you need to start repaying. They took our tax refund check this year which reduced the debt by 40%, we were told that from this point forward all tax returns would be applied to his student loan debt (regardless of whether or not he was on a payment plan). We were contacted by a collection agency & told that he was accepted into a “2nd chance program” to rehab the loan (that way he would be back in good standing & will receive future tax return checks). When we asked about the Stimulus check she said that we should receive it & it will not be applied to his debt (like our tax return check earlier this year). Anyone else in this situation? Do you think we’ll get our Stimulus check?
I really don’t understand the first two answers. I went through the same thing about a year ago. I was accepted into a student loan rehabilitation program that allowed me to pay off my student loans and get out of default. After nine months of paying faithfully, I received a letter that I was out of default and that the IRS had been contacted to not take anymore of my tax returns. Your program probably works in the same way. Once you default on a loan, you have to prove that you are willing to pay off the debt. I find it highly doubtful that they are going to automatically pull these lons out of default. Many of these programs have a minimum period in which you have to pay for a certain amount of time in order to get your loan out of default. They also have to contact the IRS, and nyou should receive a letter from the IRS stating that they will no longer be applying your refunds to the federal debt.
With that being said, according to the IRS website, the following is said regarding unpaid student loans.
Your payment may be less than the maximum for one or more of the following reasons:
You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
You are married and your net income tax liability is less than $1,200.
You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
You are married filing a joint return and your AGI is more than $150,000.
You owe back taxes.
You have non-tax federal debts such as unpaid student loans or child-support obligations.
So according to this, then no, you will not receive a stimulus check. For your sake, I sincerely hope that I’m wrong. However, I find it doubtful that the IRS has been contacted regarding your “rehabilitated loan” (it usually takes, I believe, 6 weeks) so I would not get my hopes up.
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