I have a federal student loan of almost $7000, now through NCO Financial. I called NCO to set up a payment arrangement and they told me my best bet would be to go through the rehabiliation program. I agreed with that, but then I was told that I was not in fact eligible to rehabilitate because I had previously defaulted on a rehabilitation program. Instead, they want me to pay the full amount or make a settlement of about $5000. However, I know I have never defaulted on a rehab program. When I asked NCO for details of the default, they referred me to the Department of Education.


