Borrowers Advised to “Dial Before You File” to Know if Your Loans Are in Default and Your Refund Is at Risk

January 13, 2026 | WASHINGTON, D.C. — As tax season takes hold, Protect Borrowers and National Consumer Law Center released today the following Public Service Announcement warning borrowers to check if they are in student loan default before they file their taxes:

As borrowers prepare to file their taxes, they should first check if their federal student loans are in default and take extra precautions—or potentially risk having their tax refunds seized. Seizure could include refunds of federal Child Tax Credits and Earned Income Tax Credits, critical lifelines for working families in poverty.

Student loan experts advise borrowers to “Dial Before You File” to find out if their refunds are at risk. They can call the Treasury Department’s Treasury Offset Program Call Center at 1-800-304-3107 to see if they are on the list to lose some of—or all—of their federal tax refund.

“If your name is on the list of people at risk of having their tax refunds seized, you should take steps to get your loans out of default before you file your federal income taxes,” said Kyra Taylor, Staff Attorney at the National Consumer Law Center. “You might want to file for an extension so you have time to take steps to protect your refund.”

Generally, the government will not reach out to tell someone it will take their tax refund beforehand. It might only send a single notice when a debt first goes into collection—and many people miss that letter. However, each year, the federal government creates a list of people who owe it money and who may have their tax refunds taken to collect on the debt. By calling the hotline, anyone can learn whether their name is on that list.

If your name is on the list, there are several steps you can take, including:

  1. Filing for an extension.
  2. Beginning the process of getting loans out of default. That might mean borrowing a new “consolidation loan” to pay off the defaulted loans or rehabilitating your loans.
  3. Finding out if student loans are eligible for a loan cancellation or discharge program.

“Working families depend on critical tax credits to stay afloat during the current growing affordability crisis and stagnant wage growth,” said Persis Yu, Deputy Executive Director and Managing Counsel at Protect Borrowers. “Tax credits, like the Child Tax Credit and Earned Income Tax Credit, are critical anti-poverty programs. Seizing these tax refunds—especially without warning—throws families into financial tailspins, preventing them from affording critical needs like repairing a car to drive to work, or catching up on past rent and utility bills.”

Details on each of these steps are available in a new guide on the Student Loan Borrower Assistance website.

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About National Consumer Law Center®

Since 1969, the nonprofit National Consumer Law Center® (NCLC®) has worked for consumer justice and economic security for low-income and other disadvantaged people in the U.S. through its expertise in policy analysis and advocacy, publications, litigation, expert witness services, and training.

About Protect Borrowers

Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice.

Learn more at protectborrowers.org or follow us on social @BorrowerJustice.