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From personal experience if you have federal loans (government subsidized or unsubsidized) they will garnish your federal income tax and apply it to the debt.I live in Alaska and we get an annual pfd(permanent fund dividend), basically free $ from all the oil revenue to the citizens of AK,well since that's state funded I also had that garnished for my 1 state loan that I had taken out.There is a program I went through called College Lending Solutions and they consolidated my federal loans so im out of default and in good standing so this year im getting my federal return for the 1st time in years! Good luck..

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Q: Can the dept of education keep your state and federal tax return?
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