Guaranty agencies are the quiet Bernie Madoff's of the education world. Not only do they have license..(which they freely use) to report erroneous information regarding a student's status. But those guaranty agencies which are also lenders or closely connected to lenders more often than not refuse to change to keep the student's account in delinquency so they can receive the lump sum payment from the Department of Education.

Only after they receive the 'insurance' lump sum payment for the full amount of the loan do they correct the student's account. Guaranty agencies receive more of a benefit from students who default than students who pay their loan payment each; and with the Department of Education's extremely lackadaisical oversight they have the ability to operate as they please. I have seen it with my own eyes!