Sallie mae debt being paid by insurance; what does that mean?

I was effected by both hurricanes Katrina and Rita here in south La. My finances were/are in ruin. I've managed to hang on to my home and car so far.

I am very late on my student loans with Sallie Mae, who has been very rude. I'd applied for and was approved thru my employer for a federal program that gives credit off of your loan for each year worked at a rural indigent hospital in need of nurses. I've worked here 14 yrs.
I was told by SMae they do not recognize this though they are familiar with it

* In checking my credit report I see under Sallie Mae it says 'debt being paid by insurance'.
Any idea what this means? What insurance?

I have not been notified of any changes in my insurance except my homeowners going up first $500 a yr because my credit dropped, $400 a yr due to my hurricane claim-only one I've had with Horrible, uh, Horace Mann.

Now another $100 a mo. since the state had to pay for those who had no ins. it's passed on to us who have!
Thanks so muc

Sallie Mae is a federally backed loan program so they may be getting money from the fed govt. to cover your debt.

Have you contacted Sallie Mae about deferring your payments or get a forebearance?