Problem: My private student loans (consolidated many years ago). The principal balance is $24,000, and Iâ??m about $4,200 past due (18 mo. +/-). The private lender (Key Bank) turned the loan over to the guarantor which sent it to a CA. After a few months of not returning calls, I called the CA today. I told him that I know the creditor accelerated the debt but Iâ??m ready to pay all past-due amounts in full and asked if they can send the loan back to the lender. They told me â??noâ? â?? two options are (1) a lump sum payment of 70% or (2) pay 20% up front and then pay 1% of balance per mo at 1.75% annual interest until paid. I was ready to take option two, but the loan will continue to show as delinquent until paid in full. At 1% per month, it will take over 8 years of monthly payments all the while showing delinquent. CA then told me they â??mightâ? accept a lump payment of 35% in full satisfaction of the loan. I know there is a â??rehabilitationâ? program for federal loans, but I didnâ??t see any similar requirements for private loans. I tried calling the guarantor (now the owner of the loan), but I canâ??t get anyone on the phone, they donâ??t return calls, and the recording says you must deal with the CA if the loan is with a CA. My credit took some real hits, but I would like to improve it to the extent possible. Whatâ??s going to be worse? â?? settling for 35% of principal balance or making payments for 8 years all the while showing it as delinquent? I am more than willing to pay the loan in full over time (I feel itâ??s a personal, moral obligation but understand others may disagree), but it drives me nuts to think that I will have 8 years of delinquent payments reported when I am paying enough to reinstate the past-due amounts and I am making the monthly payments every month for 8 years. Any suggestions?? Thanks!!