State policy on tax refunds for college students needs to be changed

Editor,

CC: Senator Olympia Snowe, Senator Susan Collins,Governor John Baldacci, Portland Press Herald, Portland Daily Sun.

Dear State of Maine,

I would like express my concern with you. I filed my income tax returns late this year because I had some student loans that were in a rehabilitation program and had a tax offset. I waited after making six months of on-time monthly payments in the rehabilitation program to file my taxes so I could actually see a refund. I checked the status of my federal Income tax return, and it is on its way, because they verified that I have earned my tax offset to be removed.

I checked the status of my Maine income tax return and it vaguely stated: "Your return has been changed; no refund will be mailed to you. You should receive an explanation of these changes within the next three weeks. If you do not receive an explanation within that time, you may call our taxpayer assistance line at (207) 626-8475 or e-mail us at income.tax@maine.gov." (Maine State Refund site notice) The tax offset was a punishment for neglecting my student loans, I understand and have learned from that last year, but the rehabilitation program is supposed to do just what it's called "rehabilitation" helping students reconnect with good payments in a timely manner, which I have been doing. The program is laid out, after six months they release the tax off set and eligibility for Title IV funds from the US Government, after nine months you complete the rehabilitation and your student loans go back to the original lender and you make the tradition payments again.

I feel incredibly frustrated and completely neglected, that the state I live in and pay taxes in, just forwards my refund, without a
question no doubt. FAME (Finance Authority of Maine) says "Maine is one of the few states that just automatically forwards your refund to us if your student loan is in a default status." (Rochelle at the FAME call center July 22, 2010). I guess default and "rehabilitation" mean the same thing to you. I guess the efforts of hard working in debt STUDENTS means nothing to you. Please give a student some respect who is working hard to pay of debt and "rehabilitating" his educational loans. I mean come on now, simply earning a living in Maine doesn't afford us college students and graduates the ability to pay off loans, have car payments, insurance payments, rent or mortgage and basic living costs. It's no wonder most college graduates leave our state.

Please change your policy, and try to be a little more understanding of the struggle facing college students. Please excuse me if this letter was offensive, college students deserve a little more respect, especially if they are making a great effort to straighten their loans out. Our state of Maine does not need to interfere with that process. I have forwarded this letter to Maine Senators Snowe and Collins and Governor Baldacci, and I am eager to read their responses.

Thank you so much for taking the time to read my letter.

Scott Anderson

Portland