Student Loans collection abroad

[treetoad]

What is the name of your state?What is the name of your state? Originally Georgia

I am a US citizen who has lived out of the country for the past 11 years. For the last 9, I have been a UK resident . During an 18-month period of unemployment, I am afraid I allowed a large student debt ($140,000) to go into default. OSI of Ohio have purchased the debt and are now offering to rehabilitate it for the sum of $1160 per month for a year. After this time they say that it should go down to around $560 per month. The problem I have is that I simply cannot afford the larger amount (I might be able to pay the smaller, but they refuse to make it available until I have paid the higher rate for a year). My income has halved since I originally lost my job, I now have two children and my wife no longer works full time. I have explained this to OSI and suggested we negotiate a lower rate. They aren't interested, however, and spend most of time suggesting I put my payments on a credit card or telling me they will litigate if I do not pay (where do they find these people and are they on commission?!). What are the risks of ignoring them and paying what I can afford? What else can I do?