Diversified Collection Services review: defaulted school loans ( 3 comments)

My name is Colleen F. I am having a very hard time with DCS due to the fact that my school loan account was turned over to them. About 18 months ago, I became homeless with my family (3 daughters, son, and 2 wk old granddaughter). I was living shelter to shelter, and had no means of a steady address, and no money for a P.O. box.

In October 2009, I received a letter stating that my school loans had went into default, and they wanted to help me with a payment plan to get tham back on track. They gave me an option that I was unable to accept, and I explained the situation to them about becoming homeless, and until then, my loans we up to date and being deferred accordingly with my loan company.I also explained to her that I am unemployed and recieve only $240 a week, and that with rent, electric, gas, and other expenses with my children, I had not been able to make any payment plan, and that I usually file my taxes in Febuary, and that I aould make a large lump some payment at that time. She told me that that was NOT an option being that my social security number and name have been submitted to intercept my tax refund for the year 2010. I was upset and crying because my tax refund was my means of money to get through the first few months of the year, being I could barely make it on umemployment, and was not eligible for any assistance. The woman on the phone told me that it was not their problem, and that they coulod provide me with another option for hardship situations. I was then told that the only thing they could possibly do to help me was, make a payment plan of $292 a month, for approximately 9 months, and that my loans would POSSIBLY come off the tax offset hotline.

They continually call me and ask the same questions about the offer of $292 at the time of that particular phone call, and monthly payments of $292. I asked several times if I could mail in a little bit at a time, and the representitve continually tells me no, and that they bare going to document that I am aware of this debt, and refuse to make any payments.

If somebody could please help me, please let me know if it is possible to get the loans out of default, or of any other known options that are out there.