Federal Student Loan Default - No Time Limit On Offsets

By Protect Law Group1 min read

You should not have to struggle with a federal student loan administrative wage garnishment or income tax refund offset on your own. Instead, turn to one of our attorneys who specializes in defending federal student loan default collection actions. We are dedicated to helping you resolve your federal student loan default.

As with all extra-judicial collection tools, there is no statute of limitations for offsets.  This was unclear for some time because the Debt Collection Improvement Act previously prohibited offset for claims that were "outstanding" for more than ten years.  The issue of whether the ten-year statute of limitations in the DCIA applied to offsets for collection of student loans was litigated beginning in 2001.  The US Supreme Court ultimately decided the issue in the government's favor in 2005.  It is now clear that the government will not be bound by any time limits when attempting to collect student loans through offset.

If you are dealing with a federal student loan default, contact us at 888-756-9969 for a consultation.

Published by Protect Law Group. This material provides general information. Contact the firm for advice about your circumstances.

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