As far as I can tell, the Guard pays back the loan servicers in payments, and not in a lump sum? I've recently got an email saying that Fedloan is now the servicer of my contract. They're not the most reputable, and countless people have gone delinquency on their loans since they aren't processing payments timely or correctly. What would happen if I did get delinquency on my loan, how would that reflect on my college benefits for the future?
These links talk about Feloan, the first link is the most informative. Read the comments and you'll see a lot
http://thecollegeinvestor.com/157/fe...loan-servicer/
http://thecollegeinvestor.com/249/wh...oan-continued/
http://thecollegeinvestor.com/536/fe...aga-continues/