HELP! Loan paid off via garnishment after 8th rehab payment.. DoE won't give me + marks

[nikocb]

I have a defaulted student loan through the Department of Education. Last year, they began garnishing my wages. I went on a rehabilitation plan with 'Financial Assert Management Systems'.

I had the rehab payments automatically withdrawn at the end of each month. I made 8 of the 9 payments with no problems. At the end of last month (February 2015) the 9th payment was not withdrawn. I called FAMS to find out if there was an issue.

I was told by FAMS that they attempted to withdraw the 9th payment but it did not go through because my balance with the DoE was ($38). They said that my balance was paid off via the wage garnishments and that they couldn't take the 9th payment.

I called the Department of Education to inquire about it. They told me that they would send me a refund for the $38, but that the status of my account would show as 'Payed off through collections). I told them that didn't seem right and asked if there was anything I could do to get the remarks turned positive. After all, I had held up my end of the rehab bargain. I was told NO.

Is there anything I can do?

[Anonymous]

Call the CA and DoE.  They should have allowed you to make the 9th payment early to avoid this.

[nikocb]

Is this something they should have brought to my attention? Or am I to blame because I didn't inquire about it? I have a feeling this will be an uphill battle since the CA told me to call the DoE and the DoE told me there was nothing they could do.