Below is the information I found on the Illinois Student Assistance Commission's website. According to what they are saying here, they only require 9 months of consecutive payments. I guess you should find out who the holder of your loan is (see below) and explain to them all the arrangments you have made payments to. Hopefully, you made your payments within 20 days of your due date (see below). If so, your proof from your bank should be evidence enough to show them you've complied with the 10 payments. Now you should ask for the ask for a Rehabilitation agreement.
I would think someone would've explained this all to you, but I KNOW sometimes people on the phone are not competent or not well trained or simply just a newbie. I would call back and ask them for the Rehabilitation agreement and send it all in to the appropriate place along with proof that I've complied with the 9 months payments. I wouldn't mention that you were told you weren't eligible, I'd just try to get the form.
Also, I found an address to their executive offices. If you don't get anywhere with the knowledge below, I'd send all my information to them and make my requests to them. Maybe that will help. But don't forget to dispute the late payments if they won't take care of it. The address is:
500 W. Monroe
Third Floor
Springfield, IL62704-1876
Phone: 217.782.6767
Fax: 217.524.1858
E-mail: dcalcara@isac.org
From their website (http://www.collegezone.com/studentzone/144_1201.htm#holder_of_your_loan):
Federal Loan Rehabilitation
The default status may be removed from your credit bureau report through participation in the Federal Loan Rehabilitation program. To be eligible, your loan must not have a legal judgment against it, you must voluntarily make nine approved and on-time payments within a consecutive ten-month period, and sign a Rehabilitation Agreement. Each of the nine payments must be made within 20 days of the due date. You may not pay a lump sum to qualify for loan rehabilitation. However, you may start over if you are unable to fully meet these requirements within a consecutive ten-month period.
Approximately 60 days after the qualifying payments have been made, and the signed Rehabilitation Agreement has been received, your loan will be repurchased by a participating lender to whom you will send all subsequent payments. The most important benefit for you is that the default status on your credit bureau report will be removed. (If you are currently under administrative wage garnishment, ISAC administers a separate program which will allow you to rehabilitate your loans; contact ISAC's Debt Management Department for details.)
Please contact the holder of your loan to receive additional information about Federal Loan Rehabilitation.
In addition to the removal of the default status on your loan, other benefits to rehabilitating your loan include:
- loan is removed from active collection status
- federal and state student aid eligibility is regained
- deferment and forbearance eligibility is regained (if borrower meets eligibility requirements and lender approves request)
- collection costs are reduced.
Reinstatement of Federal and State Student Aid Eligibility
If you have a defaulted student loan, you are not eligible to receive additional federal or state student aid funds (student loans or grants). You do, however, have a one-time opportunity to reinstate your eligibility by voluntarily making six approved, consecutive and on-time monthly payments. You will need to submit a request (in writing or by telephone) to have your eligibility reinstated. It is important to remember that this is a one-time opportunity, and you may not miss a payment or be late on any of the six agreed upon payments. You may not pay in a lump sum, or restart your repayment if you should miss a payment or if a payment is late.
After eligibility is reinstated, you must continue to make payments on your defaulted loan(s) even while in college. If you fail to continue to make monthly on-time payments, you will no longer be eligible for federal and state financial aid programs, including student loans, until your loan(s) are removed from default. Contact the holder of your loan for more information about reinstatement of federal and state aid eligibility.
!!! Doesn't it make you feel good when things work out the way they're supposed to??!!! Don't forget to let us know what happens with your fico's once the default is removed!!!