The Nation : Student Loan Crackdown
The Education Department said it will begin warning nearly 2 million student loan defaulters this week that the amount of their outstanding loans could be withheld from their federal income tax refunds next year as part of a crackdown on loan “deadbeats” if they do not pay off their debts within 60 days. If the debt is more than the refund, more money will be deducted from the defaulter’s 1986 refund. The department estimates the crackdown could recover as much as $250 million of a debt of $5 billion.
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