With any luck morally responsible people with down vote this into oblivion, but... At this point your loan has (almost certainly) already been sold as "bad deb

With any luck morally responsible people with down vote this into oblivion, but... At this point your loan has (almost certainly) already been sold as "bad debt" for pennies on the dollar, and given your description your credit probably reflects this. The good news is there are very few threats that can be leveled at you unless you somehow find yourself not broke. Here is the ticket to loosing the $150,000 debt. 1) Start hiding money in a "mattress" outside of the visible banking system. You need about 8-10% for a private loan 23-30% for one with government backing. 2) make it clear to the lender that they will never see regular payments on your loans that the debt truly has no collection value. 3) Once 1 and 2 are ready wait for a morning phone call from a debt collector. These folks are paid on commission and have quotas to meet. You need a hungry one! (you probably have gotten good at identifying them by now haven't you?) let on that you might have some money at the moment, but that you'd rather use it to buy a car/start a business mention that you've had to save up because you cannot borrow. The offer your looking for is making an immediate one time payment of $x in exchange for canceling your all debt. (check this several times to be sure) Get that offer in writing then make the large payment quickly. Your credit will recover in 7-10 years.