So I defaulted on my student loan a while back (government loans, not private) due to severe hardship and recently I've been trying to get the whole situation straightened out because I only had 2 or 3 small loans (totalling around $7000) which were split up into very weird amounts and sold off to a CA. But I have 4 or 5 different account #'s with them and all these different $ amounts. One is even as low as $14?!?! Well, I filed my taxes and got a refund of $5025 and, of course, every penny was taken for the loans. (Grrrr!) Well.....about 3 weeks after my tax money was taken, I got a letter from the CA offering me a settlement amount of $3000-some-odd dollars instead of the original total due which was $7000-something (after all the fee's and crap.) So my questions are these:
1 - My tax money is going to go to the OC (NelNet, or whoever it was) and NOT the CA's, correct?
2 - I'm assuming that settlement offer is null and void since my tax money was already taken and sent to the OC (the settlement offer was sent from the CA). I know it probably is, but a girl can dream can't she?? lol
3 - What happens now?? So now the OC has been sent my tax refund which should bring my debt owed to them down to around $2000. So....what happens to the $ I owe the CA? I'm confused about how this works and I wanna pull my hair out.