Is there a way to lower the debt or should I file bankruptcy?

You can tell them you will pay a reduced amount or you will file a chapter 7. Then they will get nothing.

Assuming that it is a federally guaranteed loan, Bankruptcy cannot eliminate the debt, unless you can prove "undue hardship". Courts have been very strict, and it has been very difficult to eliminate the debt in bankruptcy. In some rare cases, student loans have been discharged in bankruptcy, usually if a person is disabled in some way. It is important to speak with a bankruptcy attorney to discuss your options. If you are working, you might be able to file Chapter 13 Bankruptcy, to pay whatever you can of the debt over time. However, the balance of the loan would be left to pay, plus interest. If it is not a student loan, you may have some other options.

You really need to consult with a bankruptcy/student loan expert. Generally student loans cannot be easily discharged in bankruptcy. There are some limited exceptions, but you will need someone who really knows the case law and can analyze your situation carefully.

You will have to see an attorney, government student loans are generally NOT discharged in a bankruptcy. There are exceptions but they are hard to qualify for. I, or any other adviser, will need many more details before you can be given specific counsel and advise.