Repaid defaulted student loan-still on file

So the last time I posted on this site was a long time ago. My student loans were in default and I was being harassed by collection agencies.  The problem was that I was in a car accident that left me with multiple injuries and many years of recovery. The collection agencies even called me at the hospital (somehow they found me even though I was airlifted to a different hospital then the one that was close to home.) Anyway the point is that after 5 years of harassing calls and letters I finally received my settlement from the accident, at which point I promptly paid off every single debt I ever had. I paid for multiple months of usage of my credit report just so I could make sure that the debt was removed from it. It did take quite a few annoyed phone calls to get it removed from my credit report, and they never sent me confirmation of the debt being repaid. It apparently doesn't matter how many times you request it, they just won't send it. So it has been about 3 or 4 years since I fully repaid my student loans and  seven since I was actually in school. I am now fully recovered, 31 and wanting to return to school and finish my degree. I do not have the money to put myself through college so I am forced once again to apply for a student loan. Which I did about a month and a half ago. I have been checking the progress on studentaid BC, and I found out that there was a restriction keeping my loan from being processed. I phoned and they were just as confused as I was until they noticed that the file said I had an outstanding overaward of around $1000. Which was really laughable because as they and I clearly know I fully repaid everything. Anyway they sent a paid confirmation letter to BC StudentAid 2 weeks ago. They said it would only take 3 days to process...2 weeks ago. I phoned again on Monday and it still hasn't got there, and now I have missed my registration date. This time I had them send me a copy of the letter (hopefully they do). You know at this point I am beginning to wonder what the point of paying these debts off is, if they follow you around for the rest of your life anyway. Now I wonder if they will even approve it. What is the legislation on that? Paying off debts that have gone into default and then applying for more down the road?