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Tax Refunds at Risk for 9 Million Borrowers

1/15/2026

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Summary

Story summary

Student loan borrowers in default face potential tax refund seizures this year.
U.S. President Donald Trump noted this spring could bring the largest tax refund season.
Around 9 million borrowers may miss out due to the U.S. Department of Education's collection activities.
Experts warn refunds, including child tax credits, can be seized to cover defaulted loans.
Borrowers should check their loan status and consider extensions to protect refunds.

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Story summary

Student loan borrowers in default face potential tax refund seizures this year.
U.S. President Donald Trump noted this spring could bring the largest tax refund season.
Around 9 million borrowers may miss out due to the U.S. Department of Education's collection activities.
Experts warn refunds, including child tax credits, can be seized to cover defaulted loans.
Borrowers should check their loan status and consider extensions to protect refunds.