paid off student loan

Posted by payingdebt (66.254.128.142) on March 12, 2003 at 11:37:06:

I defaulted on my Michigan Guaranteed Student loan about 5 years ago. For the past 5 years they have been taking my federal tax returns. The principal balance was paid to zero. The CA said that I was still responsible for 442.00 in collection fees. I had set up a payment plan with them which they even sent me coupons to make the payments with. Apparantly the amount was too low, so they proceeded to garnish my wages. Because it was a state guaranteed loan they did not have to have a judgement to garnish. At the time of garnishment I requested a detailed statement of my account. The statement they sent me said my account was paid in full. I called them and they said that they sent a refund back to my employer with a garnishment release letter.(10 days ago which has not yet arrived)I am furious that they took this step when the account was paid in full. do I have any recourse.

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