Settlement is not always easy for student loans. But it is worth considering a settlement, especially if you have a fairly large lump sum to offer. It can be difficult, however, to negotiate this type of deal. 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 this strategy.
Student loan settlements are difficult to get, but are possible in some cases. The government and most private lenders will often require you to pay fairly large lump sums, but you can sometimes negotiate lower amounts. You may want to consult a lawyer for assistance. If you pursue on your own, make sure to get the final 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.