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Private student loan collection


badcreditsucks
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I have a private student loan that has been sent to collections.  I have auto pay set up and I plan to and have been paying until an unexpected death in my family happened and my income took a big dip.  My question is:  How do I get this loan off of my credit as a collection?  I want to buy a home next year and to have this huge collection sitting on my credit report is definitely not a good thing.

 

Should I try to settle the account?  Balance is around 26K, what would be a good amount to offer?  I think when I set up my payment arrangements they were willing to settle for 21K...uh, no. 

 

If there are companies out there that specialize in this type of thing is "refinancing" a possibility?  I'm sure most companies don't want to assume the risk, but I have been paying on time for the last 2 years with the exception of 3 payments.

 

Any help is greatly appreciated.

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