National Consumer Law Center Report: EITC Seizures Harm Working Poor
Boston - Today, the National Consumer Law Center (NCLC) released Voices of Despair: Student Borrowers Trapped in Poverty When Government Seizes Their Earned Income Tax Credit. The report compiles stories from borrowers recounting the hardship caused by the federal government’s seizure of their Earned Income Tax Credits (EITC) because of a defaulted student loan.
In January 2018, NCLC asked student loan borrowers who had their EITC seized to share their stories and to tell us what they had planned to do with their tax credit. Many borrowers described the things their growing children would have to do without—clothing for the next season, a bed to sleep in, medical care, a roof over their heads, and in some cases, food in their bellies.