My check was garnished $10,000 + for SL and finshed paying off in 12/06. Now the collections says I still owe them $400 + for interest and handling fees. I do not feel like I should pay them anymore money. I'm back in shcool now and they are holding up my funding process. Please help.

Thanks

Interest accrues on a daily basis and you are legally responsible for it. You are not out of default until the last penny is paid.

do you think that i can ask for a deferrance/payment delay becasue i'm back in school now?

Nope....when you default you lose all deferment/forebearance rights.

First, make sure you actually still owe them any $. I, for one, would not just send money in b/c someone claims you owe $.

Did you ever receive a notice stating you've paid in full? Pull your payment records. Why did they stop at $10K?

Have you pulled your credit reports? What do they say?

Contact your loan guaranteeor/lender to see what they have on file for you.

IF, after you've done all of that and it is PROVEN that you still owe monies - then perhaps work out a payment plan, however I would check for a forbearance FIRST prior to dishing out any $$$. What does the school say about all of this?

Good Luck!