In 2003 I was notified by a Law group that I owed $2685.00 on a defaulted student loan from 1987. I had recieved 2 pell grants to pay off student loan before I graduated. I was given $300.00 as overpayment. Then the financial officer was arrested for embezelling loan and grant money. He went to prison. I was never contacted that I owed anyone money. I worked in the same area as a Barber so these people knew where I was. I have no proof that it was paid so have been making monthly payments of $50.00 since 2003 until last Jan. 2007. They stopped sending me invoices in Nov. 2006. I sent a payment anyway so I would not be charged a late fee and again in Dec. I recieved a letter saying they didn't know who I was or what it was for and to call this number but no answer. They cashed both checks . I haven't sent any payments since that time. I've called the main office and still get no return calls. I called bookkeeping and that is no longer a working number. They have it in TransUnion as I have never paid anything . I sent TransUnion copies of my reciepts but they refuse to change their report. This is costing me high interest on credit cards and auto loan and I can't get a small business loan because of this. I am struggling trying to keep my shop open. What are my options here? He told me congress passed a law to collect defaulted loans up to 25 years and his firm bought them.

You need to contact an attorney immediately regarding this. First, to get the loan straightened out and to get it cleared off your credit report. You can locate one through the attorney locator on Lawinfo's home page at http://www.lawinfo.com/. Some do offer free consultations.