Ok, taking a deep breath . . .

I started culinary school in 2002 the school took out a loan for me. The money never was in my hands. 2003 the owner of the school was arrested in November 2003 and the school closed down. There were a bunch of people from the Dept of Education there to counsel us and stuff.

I now have Sallie Mae on all three reports reading like this

Experian - May/June 90 day and 120 day lates- sold and transferred
Transunion - paid as agreed
Equifax - May/June 90 day and 120 day lates - sold and transferred

We were all given letters that released us from these loans and I never heard anything else about it. It shows payments from Jan 2002 (which is impossible cause I wasn't in school then) I started JUNE 2002 paid until December 2006 . . .now I moved to Honduras in 05 . .who was paying these . . .the money NEVER touched my hands, I never paid a dime ever the school took care of it.

What is the FIRST thing I should do . . also it says experian "this item was verified and updated on Sept 2006" I wasn't even in the country during this time??

What is the first thing i should do and no i don't have the letter I lost it in Hurricane Katrina

(1) Get a paper copy of your reports.
(2) Call Sallie Mae at the number listed on the paper copies.
(3) This should be easy to clear up.

This falls under the "Closed School" heading.
http://www.ed.gov/offices/OSFAP/DCS/loan.c....discharge.html

If your school was truly closed, it will be listed here.
http://wdcrobcolp01.ed.gov/CFAPPS/FSA/clos.../searchpage.cfm

If what you are saying is true, you should have no problem getting this fixed.

OMG!!! I could kiss you!!! I was searching alllll night for some information that this school closed and the date and I input the school info and there it was and the loan discharge info!!! Now I have some amunition. I will call the DOE and get the discharge papers and file it with Sallie Mae and the CRA

So, let me get this accurately - Your loans were discharged off because the school had been shut down.
& now Sallie Mae is trying to get you to pay?
I'm very interested in how long between the time of discharge & the time Sallie Mae started billing you?

Salliemae probably haven't received any money from the Dept that releases you from these loans. They want back the money loaned.

SM is messing around with your credit in order to get the money from you since no-one has paid them back.
Salliemae policy..(if loan was taken out from them it has to be repaid by the student unless the school returns the money).
You need to call Salliemae & give them a copy of that letter and also call the Dept of Education to communicate with Salliemae on your behave....and once it is all said & done make SM fix your credit report a.s.a.p becos they are slow in reporting.

I once went to a private school too & the school took out a loan for me ($3000)..it never came to me..it went straight to the school..but that school didn't close down so I had to pay that loan back.

And please make it swiftly becos SM don't play....goodluck

No, Sallie Mae get's paid by the guarantor for a defaulted loan: the DOEd.
Then they come after the borrower - because that gets them more money &
obviously, so far nothing has stopped them from this practice of double collecting.