As far as a better interest goes - unlikely. What is your current interest rate? If you have phenomenal credit you may be able to consolidate the private Key Loan at 9% or thereabouts. There are a couple of companies that do this now (Key, Sallie Mae, Education Finance Partners) - usually 30 year variable, but EFP has a fixed rate consolidation which might not be a bad idea considering that they've hiked prime damn near every month for the past year.

I consolidated my federal loans with Sallie Mae and have been very pleased. They offer interest rate reduction with on-time payments, all the other bells and whistles etc.

Uncle Bose: I get those 'warning' letters as well. There should be a law against that kind of BS. A little embarrassing to have a stack of manilla envelopes that say 'Final Warning,' on your coffee table when the in-laws show up.