I have a defaulted student loan that I'm trying to settle. It was originally held by my state guaranty company and sent to a CA. This was NOT a direct loan from the DOE. The CA (Diversified Collection Services) claims I owe a little over $5000, but in the itemized billing they sent me as part of the DV process, I noticed that over $1000 of that is in bogus "collection costs". There's no way they've spent $1000 working my account. The actual capital portion of the balance is a little over $3900. I offered to settle for $3150 (80% of the loan balance) and deletion of all derogatory TLs from my CR, but they've refused twice now. They say they'll accept nothing less than payment in full, including the "collection costs" and don't seem to want to negotiate. This is only a single loan, so consolodation is impossible, since you can't consolodate one thing. I have told them that I won't rehab the loan unless all of their bogus costs are removed from the balance. What other tactics can I use to strongarm them into either waiving the collection costs so I can rehab or accept my proposed settlement?