I don’t understand this timeline, to be honest. If the last time he was enrolled at least half time was early in 2018, his loan would have gone into repayment in early 2019 at the latest (9 month grace period). I guess it’s a good thing that he is only considered a few months past due, rather than in default. I don’t see that your son has any cause for appeal with the school. He borrowed the loan, it went into repayment, and he didn’t pay. They are offering a way to get current with minimal impact on his credit score. Sounds like a good deal.