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How much do you owe in total?
As your daughter went into default the bank most assuredly has a right to call the loan. This is what they have done. If they don't agree to a payment plan then the full amount is due and owing at once.
However, you can call the bank and ask them if they will consider allowing you to pay off the money more slowly. You can explain that if they do not and they have to sue you this will take time going through the legal system and that at the end of the day they will have trouble enforcing the judgment because you just don't have the funds.
At the same time you should know that if this goes to court you will get stuck with the good part of their legal fees and you will have to pay both post judgment as well as prejudgment interest.
You need to understand that they do not have the obligation to allow you to pay by a payment plan so you need to keep that in mind when you try to negotiate with them. It would be doing you the favour it and would not be for their benefit.