I am in the Air Guard and in 2006 I was involuntarily activated to go to Iraq. I had to withdraw from school mid semester and while I was deployed I received e-mails and phone calls to my father saying that I owed the school back financial aid money because i withdrew mid semester. My father arranged a payment plan with them and upon my return I stopped the payments because I was told that there was a law stating that because I was involuntarily deployed I did not have to pay that money. The school took my 2006 state income tax in 2007. I have not heard anything from them since then and just today 2/18/2010 received a letter from them stating that I owe them $697 and that they were going to take my state income tax again if I didn't send in a letter within 30 days disputing it. My question is is this covered under the soilders and sailers act and am I liable to pay this money?
1 Answer from Attorneys
The Act which you have in mind is now known as the Servicemembers'
Civil Relief Act (no longer Soldiers and Sailors) and may provide some
protection for the service member in the kind of situation which
you've described. In any event, while you're checking that out online,
you should certainly send the letter within 30 days disputing the school's
right to seize your tax refund for a debt that they may be legally barred from