Legal Question in Credit and Debt Law in Georgia

That is really really weird. I would agree with you that the taxes and job incentive sounds like bogus excuses. Neither will make a student loan double in size. Nor does applying for a hardship. Something is not right. Is this a private or federal student loan?

When did the loan go into default? How much did you originally borrow? Do you have any of the loan documentation? I would tell them that you are not paying a dime until you see an accounting of your payment history and I would request a copy of the promissory notes that you signed. If they give you a song and dance, then do not pay and tell them you are not sending any money in unless you get documentation because you want to make sure you are paying the entity that is lawfully entitled to collect your debt and you do not want to overpay. Then start paying the money to yourself and saving the money up. You need a detailed explanation as to how this was calculated before you start sending money to anyone who asks..

If you are really really stuck, then go see a real lawyer and pay the lawyer for a consult and to write a letter to the lender/debt collector and see if this can be straightened out. If its bureaucracy, then directing the letter to the right person may get a meaningful response. You are dealing with no-name lower level lackeys who do not have the ability to help you and probably really do not know what happened. All they know is what they see on their computer screens. You need someone higher up the food chain. Try asking to speak to a supervisor or manager or someone in charge and get their physical address too as the lawyer will need it. Try to do research on these people too. Knowledge is power - never know what you will find by just googling them.