The U.S. Treasury is seizing Earned Income Tax Credit (EITC) refund checks from the working poor to repay student loans that are in default, and the consequences on working families are devastating.
The government’s policy of seizing federal student loan borrowers’ EITC runs counter to almost every
goal Congress set for the EITC1 and its student loan programs. These programs were designed to
support economic mobility and achievement of financial stability for low-income Americans working
towards a better future, and to help lift future generations out of poverty.
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