I defaulted on a private student loan in Spring 2023. It's been crickets for awhile, but I was served last week. I owe about $44k. I consulted with a lawyer who advised me to seek a consent judgement or file Chapter 13 (although he told me it would not be discharged, just a payment plan). He said he would help me negotiate the consent judgement. I asked about the possibility for settling for less and he did not seem to think this was possible. He told me I should call and request the consent judgement.

I called today and asked about my options. I was told if I settled for a lump sum the case would be dismissed and there would be no legal fees. I was told if I entered a consent judgement that they would file that, and then I'd begin the payment plan. Ok, great.

During that first call the guy offered $40k settlement. I said I need to think about it and hung up.

I called later today and spoke to someone else. I asked what their absolute lowest offer was and she asked me for my income information (like my monthly income, some expenses, etc.). This had alarm bells ringing. I asked if this was required and she said it was (I know, I know, they can probably say anything). She made it sound like it was required to generate the lump sum offer.

After she told me it was required, I gave her the information. I stretched it a bit (in my favor), but not much. I am now FREAKING OUT and the worst part is they said their lowest number for settlement is \~$37. This is after I offered other possibilities like $20k, and $25-$30k.

What would you do? I was served on 10/1 and have 30 days to respond. I know I still have time. Should I wait a bit and call back and try again? Or should I just go for the consent judgement?

(PS I don't have any of the "defenses" - they provided the promissory note, served me correctly, are within SOL, etc.)