I have heard that a settlement for some fraction of the loan’s amount is a possibility. Is it best to hire a lawyer to negotiate that? How does one find a good and fair attorney with expertise in student loans?

Some lenders will eventually negotiate a payment plan or settlement and yes, if you can get help from a good lawyer, you’re likely to be better off.

The National Association of Consumer Advocates (NACA) is a nationwide organization of more than 1,500 attorneys who represent consumers.  NACA lists its member lawyers by region and area of practice, including student loan law: http://www.naca.net/find-attorney.

There are also legal services organizations in each state that provide service for poor people.  The Legal Services Corporation (LSC) is a big funder of those programs.  LSC provides this list of the programs they fund by state: http://www.lsc.gov/find-legal-aid