Key Bank Alternative Loan in Default, Help! Options

[ThickBurger]

Hello.

I’m in a pickle due to my own ignorance. I know I screwed up. It’s time to fix this. I’m ready, with your help.

I have $72k currently outstanding in Private Student Loans. Defaulted in 2006. My mom is a co-signer.

OC: Key Bank (Key Alternative Loan)
CA: Sentry

I can’t seem to find anything on whether or not this Loan is backed by the government. My mom is a co-signer, so her Credit went down hill as well. I’m at the point where I can make monthly payments on this.

Is Rehab an option? Should I talk with the CA on the phone or only in writing?

Mom talked with CA, they offered to settle for $40k, in one lump sum. I don’t have access to that kind of money. Since they offered a settlement, could this loan be discharged in BK? Original loan amount is $65k. I have never spoken/written to this CA about this.

Any advice on how to proceed? I don’t have any assets, Have a car but still owe $2k on it. Mom owns a house, which is has about the same owed on it as what it’s worth. In addition there is a third party on the title due to a divorce she went through. Also a car, she owes about $3k.

Any one have any success with these Loans from Key Bank? Looks like SOL (In FL) is 5 years on loans with a promissory note, which this was. Does SOL even apply to this “Private student loan.”?

TIA!
ThickBurger

[Googie]