Question about community college debt and state tax refund offset
My daughter owes about $600 to our local community college for a class that was dropped. Unfortunately the college had an old address for her and she wasn’t getting the bills, and therefore didn’t realize she owed the college anything until she received a collection letter from a third party agency at her new address a few months ago. She was going back and forth with student accounts about the debt because she disputes that she owes it, but that’s another story.
However, last month she received notice that her state tax refund had been offset due to this debt.
I’m no expert, but I thought once the school sold the debt that they no longer own it and can no longer take any collection actions. Maybe there’s a loophole for government agency debts. This is in Iowa. Thanks.
