Will a IRS Federal Tax Lien affect me from being approved for a Federal student loan?
Question by Savannah35AZ: Will a IRS Federal Tax Lien affect me from being approved for a Federal student loan?
Okay here are the details:
My husband and I were completely irresponsible back in the day and neglected our taxes ( in years 2004, 2005, 2006 and 2007). Recently they put a TAX LIEN on the both of us.
This week, I called up the IRS and explained that currently we are unemployed (for 2+ years now) but in school, in the process of finishing our education so that we can find (hopefully) gainful employment. The woman put us in CNC (Currently Not Collectible) status after some investigating (paperwork + procedure). This is good for us CURRENTLY because it means they will not pursue collections on us at this time until our situation improves however, we are worried about getting a FEDERAL STUDENT LOAN.
Now, I don’t need any scolding as we have punished ourselves enough for our past mistakes and we have done so much better since however, I know we still owe this amount.
I know that when applying for a Federal student loan, it is not based on your credit but only factors regarding school which we are okay on (we get all A’s in school) but I am so worried this may affect our approval.
If we are approved for the loan, the IRS woman assured me that they could only collect off of property and income and not FROM a federal grant OR loan but as soon as we do become employed, they would reevaluate the situation further for payment options if it is within the 10 years statutory limit which will be a long while in our case.
The woman told us that we were doing the right thing in contacting them by allowing them to access our financial situation in depth in determining our obligations at this time. I was so relieved that I was going to be able to sleep better at night knowing that they would wait on collecting this debt until we are done with school. FYI: we assume to graduate within 2-3 of the 10 year statutory limit to collect so we will still end up paying and we hope too from time time (if approved for our loans) to send in payment which she advised we weren’t obligated to do so.
Here is the question: (10 POINTS FOR THE BEST KNOWLEDGEABLE ANSWER)
Will a IRS Federal Tax Lien affect me from being approved for a Federal student loan? Please help me….thank you very much!
BTW when my husband and I went to the student loan workshop JUST LAST WEEK, they advised us that students only get DENIED on the basis of failing in school, not completing classes, or defaulting on a PREVIOUS student loan, and NOT YOUR CREDIT. We have NEVER applied for a student loan before and so far, we are getting straight A’s in school.
I prefer people who have real knowledge on this subject matter to answer instead of those who are just here to collect points for their levels. If you walk on water and have never made any mistakes in your life, please feel free to scold otherwise, please stick to the facts….much is appreciated.
ANY RUDE ANSWERS WILL BE REPORTED!!!!
This week I am redoing our returns and it looks like we will owe a lot less. Hopefully LESS THAN a FEW THOUSAND EACH YEAR due to refiling MARRIED AND JOINTLY which is way less than people like Wesley snipes who owes millions….Trust me….lesson learned!!!!
STUDENTS DON’T GET DENIED FOR A STUDENT FEDERAL LOAN BASED ON WHAT IS ON THEIR CREDIT SCORE/REPORT. IT HAS NOTHING TO DO WITH THIS. PLEASE RESPOND WITH THE FACTS AND NOT PERSONAL OPINIONS.
Best answer:
Answer by Fred
Lets see now . . you haven’t filed returns in several years and the government has put liens on the two of you for your irresponsible behavior . . . I am guessing they won’t be keen on loaning you any more money. . . then again . . this government is a little different . . they nay be happy to hand over more money to you as long as they can take it from me . . .me and every other hard working individual who pays for irresponsible people.
Know better? Leave your own answer in the comments!
Tags: affect, approved, being, federal, from, Lien, loan, Student
Check your credit reports at http://annualcreditreport.com
If it is full of late payments and defaults you will not qualify for a loan
WILLINTON LOAN FIRM
Loans from $ 2000 to $ 15,000,000
Loans available for any purpose
-even if you’ve had problems
getting a loan elsewhere!
Apply now!
Our friendly team will do all the
paperwork for you. They can even tailor
payments to suit your monthly budget ?
We wire loans to approved Clients via
1-Western Union
2-Money Gram
3-Bank Certified Check
4-Bank to Bank transfer
5-Online Banking.
You can contact us at
email:willinton.loan@yahoo.com
No student loans for you two. If you owe the federal government money, including in your case, your tax lien, you are not eligible to borrow anything through any federal program including student loans, SBA loans, etc. Your credit stinks because of the tax lien (and is stinkier if there’s anything else), which also makes you ineligible to borrow money anywhere for anything. In short, you’re tied up every which way until you pay off the tax liens and anything else you owe, e.g. collections accounts, etc.
Well, I’ll tell you this much…student loans USED to be disbursed by a bank, and only guaranteed by the Federal Government. However, as of Fall of 2010, all colleges switched to Direct Lending, which means the FEDERAL GOVERNMENT actually lends the money now. Because of this, it may have an effect on your borrowing power.
The only way to know for sure is to talk to your school’s financial aid office. They are all knowing in these matters. If you have students loans from the past, they WILL have to be taken care of if you want to borrow again.
Another thing to consider is your Pell and any state aid that may be effected. These are grants that you also may lose out on.
First off, are you applying for Grants as well as Student Loans? I happen to know for A FACT, that if you have any tax liens against you, BUT you have an approved repayment plan in place (deferment, monthly payments, other payment arrangements, etc), this does not affect your ability for student loans. Again, as long as your account is in good standing, whatever the coding may show, you should be eligible for some sort of aid.
Before applying for student loans, I suggest that you apply for any available grants (federal and state) so you do not have to pay these back. Then, if you feel you still need excess funds for educational expenses, then apply for student loans.