I've paid $5000 a year for 6 years on defaulted student loans. Why are they still offsetting my tax refund?

They are in default the second you missed those payments a few years back. Once you default on a student loan, there is no such thing as "un-defaulting". Once you default, you are in default status until the loan is paid up. Second, if you "need" your tax refund this year, why didn't you amend your w-4 during 2008 so you would get a bigger paycheck during the year AND your refund would not get seized because there would be no refund TO seize? If you know your refund will get seized each year, then I don't understand WHY you wouldn't fix your w-4 to NOT get a refund. You seem like a 3 year old who enjoys sticking a fork in an power socket.

While it's certainly important to pay off the student loans, why are you having so much taken out of your paycheck for taxes? A $5000 refund is huge! Wouldn't it be better to adjust your paycheck withholdings and get a little more each paycheck? You won't get as much refund next year, but you'll have the money sooner. And please try to save that extra money, in the long run you'll be farther ahead.