Loan Forbearance

I agreed to a forbearance on my difficulties loan.Can government student still hold my refund to go towards my balance due on my loans or will I receive my refund because I did not by default on my loan

No. The government will not refund when the loan is in default. Since you're very smart and has requested a forbearance instead of not paying loans, your refund will not be taken.

Not if you're on Forbearance. I am currently Forbearance and have been for some years now and they do not take my refund.