A little background story here. I am currently in the process of helping my girlfriend fix her credit and repay debt. A part of this debt included defaulted federal student loans of approximately $12,000. She started rehabilitation over 12 months ago and has made 12 on time payments through GC Services(GCS). Over the past 3 months we have been getting the run around in regards to a date she will be rehabilitated. It was supposed to be don't in october, but was apparently extended indefinitely due to a "change over" of sorts by the Dept of Ed. My girlfriend intends to continue school next semester and was in need of financial aid, which was not available due to the default. After contacting the office of the Ombudsman, we were referred to multiple contacts to ensure a resolution. We ultimately wound up talking to the Dept. of Ed's collections office, who confirmed the delay was legitimate, and offered to send a letter of "Renewal and reinstatement". With this letter being sent to the Colleges financial aid office, my girlfriend will now be able to receive financial aid this coming semester, even whilst in default. If you're ins similar situation, it is indeed worth your time to contact the Department of Education at 1-800-621-3115. This forum is all about sharing info, and I figured someone may find this information useful!
