I was told that my loan is a "N" loan, which means nothing to me. So I asked what that is she said it is a Perkins loan through the school and it can not be Rehabed. I think she is full of it. I told them I would find out on my own and call back.

I found this:

The Higher Education Amendments of 1998 created a Loan Rehabilitation program for Federal Perkins Loans. Under this program, Perkins borrowers have the opportunity to request rehabilitation of a defaulted loan. Rehabilitation must be requested by the borrower and means that, after making 12 on-time, consecutive monthly payments of an amount agreed to by the Collection Unit, the borrower's loan will be returned to regular repayment status, the Collection Unit will instruct the credit bureau(s) to remove the default from the borrower's credit history, and the borrower will be eligible to receive Title IV funds. In addition, any remaining deferment or cancellation benefits will be restored.

* NOTE: If your loan is in judgement status, you do not qualify for this program.

From: http://www.vcu.edu/treasury/CUPerkinsLoan.htm

Well it looksw like the CA is not correct and I will call back and try again. Thanks

I just IM'd my old office buddie and she walked over to the University collection department. She talked to one of the Perkins loans specialist...none of them has heard of an N loan. She said the only conditions that prevent rehab are judgement accounts or balances too low.

Thanks LynnInMn that was above the call of duty I will call the CA back.

Well called back they won't budge. I'm going to try DOE then Ombudsman and see if they will help.

Got off the phone from the DOE they said that the CA is right they don't have provisions to rehab this loan. The DOE rep said make 12 consecutive payments to the CA and then call the DOE back. At that point they will send out paperwork to have it rehabbed. Has anyone ever heard of this?

Have you called the school directly??

Not really an option, school dosen't even own or have access to the loans anymore.

Who is the holder of this loan? The school or the DOE??

DOE is the holder now.