AES/PNC Loan Rehabilitation

[Curtis]

My wife defaulted on a AES/PNC private student loan before we were married. We have worked with the collection agency for 2 yrs now. I worked a deal to pay $100 a month on a $14,000 loan and to talk about it in a yr as to settling or continuing to pay $100. I read about loan rehab and asked the collector about it to which he called and asked pnc. They told him, so he says, that loan rehab is only for Federal loans. It seems to me that it is not.

Here is how it looks on the Experian credit report:

Account Name AES/PNC BANK
Account # XXXXXXXXXXX
Account Type Education Loan
Balance $0.00
Account Status Closed
Mo. Payment
Past Due $0.00
Payment Status Charge-off
High Balance
Limit
Terms 239 Months
Comments


And on the Equifax:

Account Name AES/PNC EDUCATION LO
Account # XXXXXXXXXX
Account Type Installment
Balance $0.00
Date Opened 8/1/2007
Account Status Closed
Mo. Payment $0.00
Past Due $0.00
Payment Status Bad debt & placed for collection & skip
High Balance $13,407.00
Limit
Terms
Comments TRANSFERRED TO RECOVERY
CHARGED OFF ACCOUNT


I am not exactly sure how bad this account is in the status it currently is in.

Is it possible to be rehabilitated now? If not should I settle for 45% of the loan amount?



Thank you!