Would it be possible to sue the Department of Education for breach of contract?

[zadok]

Not sure how to word this well enough to understand, but I'll try. The Dept of Ed offers people that are in default on their student loans the option of doing a loan rehabilitation. http://www2.ed.gov/offices/OSFAP/DCS/rehabilitation.html This is nothing new. They've done this for awhile. However, right now, they're not following through with their half of the deal. I'll give you my details to try and explain. Started making payments in October 2011. Entered the rehab program January 2011 and was supposed to be through the rehab in October 2011. I made all my required payments on time and have been told this repeatedly by the debt collector but... it's now February 2012 and I'm still making the payments because the Dept of Ed isn't reviewing cases right now. And these payments aren't small. Almost 1/3 of my take home pay every month. I know I'm not the only that's going through this. The delay for review is supposedly due to computer upgrades that have been going on since Sept/Oct 2011? It seems to me that this is a breach of contract seeing how those of us involved have made our required payments on time and fulfilled our end of the bargain, yet the Dept of Ed isn't doing their part. And yes, before it's said, I got myself in this boat, but the reason I chose this program is because I'm trying to be responsible and get my finances under control. I went to them. They hadn't come after me (yet). The main reason I chose this program was that it was supposed to be a nine month program deal before getting smaller payments and the like. Now, I've been forced to move out of my house because of these huge balloon payments they're still forcing us to pay. I'm thinking class action lawsuit for those of us involved, but I don't know enough about the law. Any suggestions appreciated. Thanks!

[arne33]

They have not breached the contract.

YOU breached by not making your original payments as agreed when you borrowed the money.
They gave you a second chance with their program.
They were under no obligation to do so,

So call your rep in Congress and ask her/him to check on the Ed Dept.

http://house.gov/representatives/