Treasury Offset Program
The Treasury Offset Program (“TOPs”) is authorized by federal law and operated by the U.S. Department of Treasury’s Bureau of the Fiscal Service. TOPs allows the Department of Education or Guaranty Agency to seize federal income tax refunds and certain other government benefit payments in order to repay the balance of a defaulted federal student loan. These involuntary payments will be deducted from the balance of the defaulted student loan, but are not reported to consumer reporting agencies as a timely payment.
If you are subject to Treasury Offset, you will receive a notice from either the loan holder or the IRS that any federal tax refund to which you might have been entitled is going to be withheld when you file your next tax return. The notice is sent to you in time to give you an opportunity to resolve the default before the account is certified for offset. The notice will be sent to your last known address, including the most recent address used by you in your most recent federal tax return.
To learn more about the Treasury Offset Program, we encourage you to visit the Bureau of the Fiscal Service’s website. You can also call (800) 304-3107 to find out if you are currently subject to Treasury Offset.