I have no idea what to do to solve my student loans. I applied for the borrowers defense to repayment about two years ago. A month or so after I applied, I logged in to my Navient account because I needed tax papers. Well when I logged in, it showed as being paid off by the Department of Education. I checked my credit report, also said paid and closed there. I decided I wanted to go back to school and filled out my FAFSA. I got a letter back saying my student loans are actually in default, the department of education paid them off to take over the debt, and they sent me to collections (according to them). This is not on my credit report anywhere. Only the department of education and federal student aid website are showing that I owe. I was never notified of them taking over my loans or sending me to collections as they claim they have. How can I fight this?
I believe you need to contact the DEPT OF ED to find out who your new defaulted loan servicer and then contact them to start a repayment option. I would try to rehabilitate your defaulted loans so that the loan comes out of default and the history of the default is stricken from your credit history if it appears there at some time. You will not be able to receive any funds from FAFSA until you get your loan out of default. I think this may be a place to start to get some info. I would contact the DEPT OF ED Default Resolution Group (1-800-621-3115) and find out all the details about the history of transactions and account activity leading to your default. Ask the rep for a Statement of Transactions on your account to be mailed to you. This may be a decent place to start.
I am in the same position. Following
Hi @Brandylw201, your account was likely transferred from Navient to the Default Resolution Group, but if you filed a borrower defense to repayment application your account should be in a stopped collections status until they make a final determination on your application.