My question involves collection proceedings in the State of: Colorado. School was in Texas.
I took out federal loans (sub and unsub) to pay for 2 semesters.
A family emergency caused me to drop my last quarter. (They had a weird policy. They were quarters but you paid in semesters). None of the loan money was ever returned to the lenders. I have checked on this numerous times. The full amounts were paid to the school.
As of date, the full amount of these two loans have been paid in full. Their balances are $0.
The school is now coming after me for the balance due to the drop. The loans more than covered the tuition.
I don't see how they can do this since the loans I took out are already paid and they didn't return any of the funds. My loan records reflect this fully.
I'd be grateful for any advice as how to proceed with this. Thank you.

