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Tax return was offset to pay on a student loan?

My tax return was offset to pay on a student loan. The loan had gone into default. I have been on a payment plan with the collection agency and they automatically remove their payment from my account every month. I was only 3 months away and $385 dollars away from coming out of default and they took my return of $4800. I was never advised they would do this.

Is this legal? Do I have any dispute rights and how do I go about this?

By: hbomb



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