Should I settle or allow student loan to write off?

[Anonymous]

Hello,

My husband has  a SL with Chase Bank (Private) totaling $9,000

We were offered a settlement for 5k -or-

Payment plan for 1k down, $400/Month

The agent explained that the debt is close to write off, and we would have to pay taxes on the amount as earned income.  I'm wondering how a settlement will affect my husbands credit score? From what I'm reading, sometimes it's not good to settle ? The balance already shows as "write off" on his credit report...so it looks like it can't get any worse.

We only have $600 in spare cash right now, so I was wondering if I should call and see if I could negotiate anything withat that. 

Any advice or other experiences with Chase loans?

[Anonymous]

I was offered a similar deal with a private loan but couldn't swing it at the time. The loan ended up being charged off with a collection now reporting every month. You'll take a big hit to ypur credit when that collection hits and subsequently when they updaye every month. If i could have a do over I would have made every attempt to settle before the charge off.