I have read some prior posts regarding settling your student loans. Like abstract, my account is held with Diversified Collection Services, (DCS). And like Amy B, my loans are pretty ancient. My loans date back to 1986 & 87 with a principal amount of $6300. With interest and fees & cost, I now owe over $12,300. They have a lien against my tax returns ($300 in 15 years, thank you George Bush!) but have never sued me or garnished my wages. In response to Amy B's prior post about SOL on a judgment, I don't think it matters. If you owe the U.S. Gov money and there is no SOL, even if the judgment could expire, the original note does not. Anyway, I wanted to know if either of you guys have settled and if so, how did it turn out? Since my loans are so old they are no longer on my credit report. I have gone through a decade of no credit and have spent the last couple of years beefing my credit up to "Stellar" status. I have recently acquired a flex line that could easily pay the amount in full. However, there is no way that I could make the monthly payment. Nor can I rationalize to myself paying $6k over principal. In Amy B's case I would think that the government has it's hands tied being that she is self employed. They wouldn't expect to see a garnishment check from herself. (Believe me. I worked doing legal collections for a few years and self employed's are usually a hopeless debt.) Although I myself am not self employed, I am severely underpaid. The CA could very easily get my employer name which I know to be on my credit report. However, going such a route would only net them around $100 a month. That is till I find a real job, which would cease the garnishment until they were able to locate me again. In my experience doing in-house collections for The Associates, 50 cents on the dollar now is more of a guarantee than any payment plan. But what are the experiences of others settling on a government debt that has no SOL? I'm thinking of offering $6k now, or give them my employers name and address and tell them to garnish their heart out. It will take them 5 years of continued garnishment to get what I am offering today. And I highly doubt I will be at my current employment for the next 5 months, let alone 5 years! What are my chances? What should I do differently? Has anyone ever settled with the Dept of Ed directly, skirting the CA?