Student loan

They aren't going to knock off that much interest. This is the consequence of not paying the loan at all.

Ok...you borrowed 17 years ago and paid a year or so?? You were given a second chance by rehabbing and being brought current. You lost your job...did you ever call and ask for a deferment?? You would have been eligible for up to36 months in hardship deferments.

No they are not going to waive the interest. GC Services is not using strong arm tactics...they are following federal guidelines. They cannot waive the interest...they can waive a portion of the current collection fees but that wont be that much..and that is only if you settle the account off in a lump sum. If you are working now and you dont come to an agreement, they will garnish your wages and they dont need a court order. Your tax returns will be seized.

Right now you have about $8000 in collection fees based on an average of fees...they can be as high as 24% which means they would be higher. Those have to be paid off before you start touching the principal and interest. Based on when you borrowed, your interest rate is probably around 8.25% which means interest is approximately $210 per month.

Was your loan just rehabbed or did you do a rehab and a consolidation?? They are two seperate steps. If you did not actually do a federal consolidation, that would be about your only option.