Is it legal for Irs to take my refund to pay off a debt I didn" t owe ?

Back in December 2012 I attended Access Careers at 2 Elm Place Brooklyn,NY 11201 after I was told by the administrator he would grant me a scholarship after I refused to enroll due to cost since I was on public assistance. The financial aid person tried to get me to sign a contract which I refused to do so he typed in my name on the contract unknown to me also the teaher was inexperinced, about March 2013 he changed the program from CCNA to data, thats when I quit and bills start coming, now the IRS took my refund of $1073.00 to pay that debt. I did some research since 2013 and this School was not authorised to teach computer classes.