Can I settle a private student loan debt?

[Auntx2]

What is the name of your state (only U.S. law)? Arizona/summons filed in Colorado.

I received a private student loan 10/2004 for $5600, co-signed by my grandmother. She filed bankruptcy in 2009 which put it in default, I was never aware of this-and still in school so it wasn't even in repayment status. I received a letter from NCO stating I owed $11000. I called them and asked them why they show it was defaulted when I never even had the opportunity to pay it back, since I was in school. They told me I needed to call the original company which is American Education Services/National Collegiate Trust. I called them, they said they no longer service this account and that is all they would tell me.
Then I get a letter from an attorney's office stating the same thing, that I owe $11000.
My grandmother also got a letter from an attorney's office where she lives (Colorado). Then they served her with a summons before the 30 days the letter stated she had to dispute it.
I never refused to pay this loan that "defaulted" in 2009 and they are just now contacting me about it.
I don't want a judgement against my grandmother who is in no financial shape to pay $11000 plus attorney fees. I don't have that either, so do I call the attorney that sent her the summons and offer less? Will they still place a judgement against her?
Also, NCO also just recently added this to my credit report, but it wasn't on there before now. I don't understand why they would wait until now to contact me about it, when this all happened in 2009. And if I settle with the attorney that filed the summons, will NCO stop trying to collect?

 

[Proserpina]

What is the name of your state (only U.S. law)? Arizona/summons filed in Colorado.

I received a private student loan 10/2004 for $5600, co-signed by my grandmother. She filed bankruptcy in 2009 which put it in default, I was never aware of this-and still in school so it wasn't even in repayment status. I received a letter from NCO stating I owed $11000. I called them and asked them why they show it was defaulted when I never even had the opportunity to pay it back, since I was in school. They told me I needed to call the original company which is American Education Services/National Collegiate Trust. I called them, they said they no longer service this account and that is all they would tell me.
Then I get a letter from an attorney's office stating the same thing, that I owe $11000.
My grandmother also got a letter from an attorney's office where she lives (Colorado). Then they served her with a summons before the 30 days the letter stated she had to dispute it.
I never refused to pay this loan that "defaulted" in 2009 and they are just now contacting me about it.
I don't want a judgement against my grandmother who is in no financial shape to pay $11000 plus attorney fees. I don't have that either, so do I call the attorney that sent her the summons and offer less? Will they still place a judgement against her?
Also, NCO also just recently added this to my credit report, but it wasn't on there before now. I don't understand why they would wait until now to contact me about it, when this all happened in 2009. And if I settle with the attorney that filed the summons, will NCO stop trying to collect?

Was the loan actually discharged in 2009?

 

[Auntx2]

No, my grandmother said she didn't include it in her bankruptcy.

 

[Auntx2]

Update

I contacted the law firm, told them I wanted to set up a payment plan last week. He told me that by making a payment that he could postpone the court date 30 days. And once I set up a payment plan they wouldn't try and get a judgement against my grandma as long as I made payments. I asked him about 10 times if he was going to do that and he said he would as long as I made my first payment. So I called him directly to make the first payment and he didn't answer, after about an hour of calling, I called the main line and left messages with no answer. I'm sure he lied to me, even though their conversations are recorded and I made my payment on the day I told him I would online. So now my grandma will have to show up to court on Monday, even though my grandpa is sick and dying in the hospital and they will probably get a judgement because she doesn't have a lawyer to help her. So, can anyone tell me how to help her fill out the answer to the summons?

 

[TigerD]

So, can anyone tell me how to help her fill out the answer to the summons?

No. She needs to talk to an attorney (preferably her BK attorney). And you are not only not an attorney your interests here are adverse.

DC

 

[CreditCounselor]

It's possible to settle some private student loans, but it's really a case by case evaluation. They won't settle for as low as credit cards, if they do decide to settle. And for credit union backed private loans, it can be very difficult to get any reduction in my experience.