I unknowingly* defaulted on a private SL serviced through AES which has been sent to collections. I am certain of the amount owed and that it is a private SL, not federal. The CA agent I've spoken with offered a settlement amount far beyond my means, but I've asked some family members for help to meet it. She said the settlement amount will remain in my file and I can "take advantage" of this amount at "any time." Also, I've made two payments so far (at 74% of my monthly income) and want to be sure these are deducted from the settlement amount. My concern is that I only have her word and I'd like to get it all in writing before I make the settlement payment. Because it's a private loan can I also negotiate to have the default removed from either mine or my co-signer's CR? He's trying to buy a house and this has really put a crimp in things.
* As for how one unknowingly defaults - when I switched schools and states it took a while for AES correspondence to catch up with me. They claim I sent in the enrollment verification for my new school too late for processing. I'm still in school - I'd thought deferrment was active. I had no idea about the default until my co-signer went for his mortgage.
