I was an ostrich due to very low income for many years, and defaulted on my loans from classes I took from '82-'90. DCS started tax offsets in the mid-90s--"fine", I thought, "at least it's helping to pay down what I otherwise couldn't afford to pay". This turned into $46+K after fines/penalties/fees/etc., and then dropped to ~$38K between the offsets and me agreeing to a rehab payment arrangement in late 2002. I was forced to deal with Allied Interstate (who has some staff that seem to blatantly ignore the FDCPA). At the time, I agreed to the payment, but specifically asked that they only contact me in writing in the future, primarily because their staff are the only people in the world that routinely reduce me to tears. Anyway, I agreed to what I was told was rehab of $150/mo, which merely covered interest and ~$15/mo. principle, or so I was told. I began getting monthly payment notices from DOE for $150, and still do to this day. While it's a struggle to pay $150/mo to them and $75/mo to the school for a Perkins, I do it faithfully, and have never once been late since making that agreement in the past 3.5 years. My income hasn't increased during this time, and only twice in the last 3 years has staff at my organization even gotten cost of living increases--no raises.

Fast forward to today when they called me at work for the first time in over a year, and have never once sent me anything in writing since I began the payment plan. The woman was extremely rude and said that while I've made consistent payments, that they're "not valid payments"??? I stated that it was their staff that I'd made the arrangements with long ago, and that I always pay as agreed. She asked who had made the arrangements, and I told her, to which she said, "Well, it's no longer valid because she no longer employed here." Then she started yelling saying I was rude (as if she wanted co-workers to think I was a difficult client.) Honestly, I was speechless, because I had only talked softly and told her that I really needed something in writing, simply because I've had so many loan problems. I asked for Allied's mailing address three times, and she refused. (Mind you, I'm in a cubicle and trying to whisper.) She was literally screaming that I was rude, and when I didn't respond, she hung up on me.

I immediately sent an online request to the Ombudsman's office, stating that I get a bill for $150/mo and always pay it on time and have proof because it's always been paid online from the same account. I also noted that I hope that since I've proven that I'm being responsible in paying for the debt, that DOE will consider taking the loan back, and maybe forgiving some of the fees.

Thoughts? Feedback? What should I expect of DOE? I feel like I'm back to square one and trembling from the stress of today's call.

I can prove that my income hasn't increased and that I'm living at ~200% of the federal poverty level. With housing costs in MN, it certainly doesn't get me very far. I can't even afford to have a car payment and I don't even have health insurance! Allied stated that interest is $137/mo., but at this point, I'm purely frustrated, just trying to do the best I can.

I don't even know that rehab would be the way to go, since they say it wasn't "valid", as it's been years since the loans reported on my credit.

Do you know where I can find the detailed ICR that breaks down living expenses? I know how to find the basic one, but it seems that I found something more detailed at one time...

I know about housing costs in MN! I am in Bloomington!

Since these would have long aged off your credit report, you probably should be looking at consolidating with Direct Loans. They will automatically assign you to the ICR payment plan, which is usually pretty affordable!