I got my loans discharged through TDP, but I am on the 3 year monitoring period. I went to file my taxes yesterday and was told that I have to pay a large amount of taxes to the IRS. I don’t have any problems doing that, but I am now doing better healthwise and want to go back to school. I know that during the three year monitoring period, if I take out new student loans or make income above poverty guidelines, then my loans will be reinstated. Because I will meet both of those, I know I will have to pay back my loans. My question is: will IRS pay me that tax money back if my loans get reinstated?

Good question.  Tax law isn’t my area.  Anybody?