Lump sum student loan payoff

Nope....wont happen. Federally insured loans never settle unless they are in default and after they have added on the 18% in collection fees. The only time I ever saw a settlement that low was from a lady that was dying of cancer....another relative had passed away and left her some money. With medical documentation she offered up the settlement...and the client approved it.

On top of everything else, anything over $600 automatically will receive a 1099....you would take a huge tax hit.

I agree. With Student Loans there is basically no way out. They cannot be listed on a BK and do not settle. They also monitor your income tax refunds and seize anything you may be getting. I have also seen them "catch" inheritances and garnish those before distribution.

They sure do settle...but not the degree that the original poster is asking for.