It is worth considering a student loan settlement, especially if you have a fairly large lump sum to offer. It can be difficult, however, to negotiate a federal or private student loan settlement. The government has some guidelines for settlement of federal student loans. Private loan settlement is generally at the discretion of the private lender. In either case, there are likely to be tax consequences if you get a student loan settlement. You should consider consulting a tax professional if you are thinking of negotiating a settlement.
You may want to consult a lawyer for assistance. If you pursue on your own, make sure to get the settlement agreement in writing.
You will also want to get confirmation that the settlement means that the loan is paid in full and that you no longer owe anything.