HELP: Resigned from Army HPSP now owe money back...
I was in the HPSP up through my first year of medical school. I went through basic training the summer between MS1 and MS2 year and submitted my letter for resignation soon thereafter (reason being anxiety tied to being in the Army and difficulty getting the Army to pay my quarter 1 tuition -- long story).
I tried to petition to have the debt forgiven but was denied. So now I owe the Army ~75k. Cool whatever. It's like I took out a student loan.
In order to defer repayment on this debt I had to submit an annual deferment application along with proof that I was still in medical school and eventually residency. During my intern year I forgot to submit the annual deferment request (I would usually submit in August/September) and a couple months later (around late February/early March 2026) I was notified that my debt had been transferred from DFAS (Defense Finance and Accounting Service) to the U.S. Department of Treasury due to deliquency.
When I received this notification I tried late submitting the DFAS deferment application but they were not willing to budge on transferring the debt back to DFAS in order for that to happen. So, now I'm stuck with my debt being in the hands of the U.S. Dept of Treasury who has started garnishing 15% of my already minuscule resident salary. In response to this I've submitted a financial hardship claim which was initially denied because I submitted "incomplete documentation". I have since resubmitted the claim with more documentation making it apparent I cannot afford for them to take 15% of my wages. That application is still pending.
My questions are:
Has anyone ever been through this before?
How likely is it that my financial hardship claim will be approved (I made it VERY clear my expenses exceed my income)?
The U.S. Dept of Treasury has also tacked on an additional 25k in fees (ridiculous, I know) -- is there any way of that getting lowered / erased completely?
If my financial hardship claim is denied is there another payment plan I can arrange instead of them garnishing my wages?
Is there anyone I can speak to directly about getting this matter resolved because right now when I call/submit paperwork to the U.S Dept of Treasury or DFAS I only have contact with different technicians, most of whom have no power and no idea what they're talking about.
Thank you guys!