Is there anything I can do to stop my defaulted student loan from keeping my tax return?I’ve become disabled.?

I became disabled in March of ’09 so my annual income for a family of 3 went down to below $ 19,600 for the year. My student loan is in default and when I filed my taxes I learned the next day that the Dept. of Education is keeping my return. Is there anything I can do to stop this and begin to make payments on my student loan instead of them keeping my $ 6402.00 refund? I really needed that money right now as my children don’t have medical, I am still not back to work, and I am only receiving less than $ 1900.00 a month. We have over $ 5000 in bills we need to pay NOW as the wolves are at the door since I have been out of work since March and I just had surgery Jan.8th 2010. I am just devastated since I thought this refund would put us back on our feet, get us caught up with all of our bills, fix my car, and pay off some traffic fines that will suspend my license if not paid w/in the next two weeks, I won’t even be able to keep my electric on without this refund since I was really depending on it. Before I got hurt I was able to pay our $ 1300 housing expense, $ 400 a month on food, our electric bill, phone bill, car expenses (gas, maintenance, repairs, insurance, and now I need new tires too!)… Please, ANY tax advice would help! This is honestly the first time in my life that I have no idea how I am going to keep a roof over my 2 children’s and my head. This refund was going to put us in just the right spot until I recovered from knee surgery and got back to work at a job i’ve been at for 13years. I just NEVER would have seen myself in this position. I can’t even get a loan. I have a whole new understanding of how the recession is affecting so many people emotionally now -even though it was not the recession that put me in this bind. God Bless everyone else that is in a bad place financially right now, let’s all pray for each other!

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