[varmit16]

I defaulted on a student loan in the '80's, approx. $800.00 principal. My dad paid it off for me. In around 1992 NYSHESC, the gurantee agency sued me for the principal plus interest. Between the original lender and the gurantee agency, the account was never closed out properly. They defaulted in binding arbitration, and their default was upheld by the district court judge. Without my knowledge, NYSHESC collected on the federal loan gurantee. I received periodic correspondence from the US Department of Education, and I kept sending them copies of the court papers. Last year, Department of Education informed me that they intend to offset my Federal Tax return, now this amount is approx. $3,000.00. My dad is now deceased, so I can't prove that the loan was paid. Do I have a remedy? Thanks.

[moburkes]

I defaulted on a student loan in the '80's, approx. $800.00 principal. My dad paid it off for me. In around 1992 NYSHESC, the gurantee agency sued me for the principal plus interest. Between the original lender and the gurantee agency, the account was never closed out properly. They defaulted in binding arbitration, and their default was upheld by the district court judge. Without my knowledge, NYSHESC collected on the federal loan gurantee. I received periodic correspondence from the US Department of Education, and I kept sending them copies of the court papers. Last year, Department of Education informed me that they intend to offset my Federal Tax return, now this amount is approx. $3,000.00. My dad is now deceased, so I can't prove that the loan was paid. Do I have a remedy? Thanks.

What about arbitration records?

[varmit16]

I have all court records, this was decided in my favor by their default, so the debt was never cleared. I think the issue is whether NYSHESC is not complying with the decision of the arbitrator/court by proceeding to collect on the loan gurantee. Would they have needed to have the decision vacated, or bring a new suit in state court to obtain a judgement before proceeding to collect?