Negotiating with Allied Interstate

Hello,

I am just beginning to go down the path of negotiating my student loans in a lump sum payoff. Even after spending days reading forums about it all, I would still very much appreciate some feedback and guidance. Here is the scenario:

I borrowed money for school 12+ years ago. Dept. of Education charged some of them off. Everything left was with American Student Assistance. It was then given to allied interstate for collection. Allied sends me bills and calls all the time, with a balance of around $130k.

I just got a credit report run, and see that there is about twice that amount. They are all listed on the credit report with some variation of American Student Assistance then half of them say: Placed for Collection, Educational,Collection Status, Account Closed because of Reposession or Charge Off, Account Seriously past due date-Assigned to Collection, Collateral 08 Keycorp. The other half says AM-STUDAST, Keycorp-46, then in the description says: Collection Account, Student Loan, Collection Status, Deactivated by Creditor 04/02.

The original amounts for each of the two variations under Limit or Highest Credit is the same, in other words there appear to be basically duplicate entries for each original loan, but then the blance owing and amount past due (which are each the same) are a bit different for each of the two variations.

Sorry if this is very convoluted.

Here is what I'm wondering. Ok, there is nothing left for US Department of Education, those are all zero amount owing. But the double entries for Amount past Due on the American Student and AM-STUDAST lines all have big balances, adding up to about what Allied Interstate claims I owe them.

1. I have an attorney who is working with me. He called them and left a voice mail, as well as faxed a letter asking them what they claim I owe. No response yet.
2. He sent them a release signed by me for them to talk to him.
3. I sent them a letter by regular mail indicating they should direct all communication to him.

Do I actually owe them anything?

Is the attorney's letter by fax asking what they claim I owe enough, or do I need him to send a letter by certified mail with more precise language "demanding verification of the debt they claim I owe" or something like that?

Does anyone have experience with Allied Interstate in negotiating loans down if that is in fact what I have to do? What percentage might I expect to negotiate it down to? I have borrowed money from a private lender to pay them off and get this dark cloud to go away. They call the house all the time (although not in awhile actually...couuld they have gone away??). I once tried to negotiate it down but they said they had to be able to verify funds. My attorney has money in his trust account. As soon as we negotiate it, he can pay them immediately.

Given the above scenario, I would so very much appreciate it if someone could give me some feedback and suggestions for how to go from here.

I am using this attorney not because he knows about this area but because he is a good friend and a good negotiator...they make me crazy when I try to talk to them and he will be more detached and just get a number figured out and be done with it.

So...any help would be so very much appreciated!

Thanks,
Laura