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U.S. Department of Education / Interest outstanding balance

1 United States

I received a call from G.C. Services stating that they are contracted by the Department of Education to collect on the interest of a Bankruptcy from over 20 years ago.

Even though when I spoke to a very helpful young lady, my questions are still having a puzzling answer.

I fill bankruptcy more than about 20 years ago for an amount the was due to the Department of Education which included the interest amount. I was never informed that some 20 years later that the Department of Education could keep sending my name to various collection agencies to collect on the interest.

To make matters worst, the young lady stated to me that if I make 9-12 monthly payments into "Rehab Program", then the original amount that was due to the Dept. of Ed would be paid by another loan company and I then would have to pay the other loan company for the amount that they paid out to the Dept. Of Ed. Why???

I want to straighten this matter out. It is bad enough that every year for the last 3-4 years my tax returns go to the Dept. Of Ed. to go against the outstanding interest which was part of the orginial bankruptcy amount.

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