In February 2011, the IRS announced a set of new policies called the “IRS Fresh Start” program regarding unpaid taxes in an effort to “…Help Struggling Taxpayers Get a Fresh Start…” One of the changes will directly affect credit reports and possibly raise credit scores.

If you’re thinking you can settle your student loan debt for 40% to 60% less than what you currently owe, think again. Student loans are nearly impossible to discharge in bankruptcy and therefore just as difficult to settle. If you’ve defaulted on your student loans, your best option is to figure out how to get caught up. Otherwise, you could be sued for the debt.

According to Experian.com, an unpaid tax lien will most definitely affect your credit score negatively. How much, however, varies since Experian notes that it depends on an individual’s overall track record of paying bills on time. The important thing is to find ways to get the IRS lien paid before considering options you have that can remove a current or old and paid lien from your credit score.