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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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Ive been paying monthly on defaulted student loans. This

Resolved Question:

I've been paying monthly on defaulted student loans. This year, in addition to my income tax return ($1,415), the economic stimulus check ($600), had also been withheld, supposedly to go toward my debt.   Pioneer Debt Recovery has been contracted by the government to collect aforementioned student loan debt. According to PDR, I had started 2008 with my debt $10,534. As of PDR's most recent statement, my debt is $10,443. This is a change of $90! (The actual amount going toward this debt, including my $795 in payments), should be $2,810 - less interest. I've called PDR, written the Federal Government AND contacted a Taxpayer Advocate. I simply keep getting referred to other departments or getting new phone numbers - where I get recordings. I'm very frustrated! I hope you can help.
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.
Hello and thank you for using Just Answer. Where do you send you student loan payments? Does the statements you received from PDR show the payments from the IRS?
Customer: replied 7 years ago.

I have arranged with PCR, (Pioneer Credit Recovery), to take payments directly out of my paychecks. (They call every six months and get permission anew).


They show NO record of my federal income tax nor the economic stimulus check having gone toward my debt. (This is according to 2 people from PCR I've spoken on the phone with as well as via hard copies of my monthly statements).


Pioneer Credit Recovery, Inc. is located in Arcade, New York. Their phone number is XXXXX

Customer: replied 7 years ago.
Um, are you still here?
Expert:  Marvin,EA replied 7 years ago.
Your federal refund, Stimulus Payment was probably sent to the U.S. Department of Education, Student Loan Department. The IRS usually sent a notice tell the taxpayer who the refund was sent to. PCR would not receive the payments from the IRS. You should call(NNN) NNN-NNNN to find out who receive your tax refund. Call in the morning about 7AM and your have a short wait on the phone.
Marvin,EA and 4 other Tax Specialists are ready to help you
Customer: replied 7 years ago.

I will try this phone number, though it is the phone number I'd been given by the U.S. Department of Education, Default Resolution Group as well as P.C.R. This number had been one where I'd merely gotten recording after recording.