The first thing to do is to contact the lender. Student loan programs have deferment programs, as well as loan forgiveness programs. See if you qualify for any of these. You should defend against the suit as best as you can. Retain the services of an attorney if possible. Poverty is no defense to a suit. In other words, the fact that you cannot pay the loan because you do not have money will not persuade the court to grant judgment in your favor. Your wages could be garnished, your bank account attached and/or a lien could be placed against your home. Do not ignore the suit.
Do not ignore this suit. Hire an attorney ASAP, preferably one with experience in Bankruptcy and student loan debt.
This answer is for general purposes only and does not establish an attorney-client relationship.
I'm sorry to say, Student debt is only dischargeable in extreme conditions (undue burden). However you may want to consider bankruptcy if you have a lot of other, dischargeable debt.
If they have not filed a lawsuit yet I would contact the lender [do not give them any information regarding your money or assets, etc.], and ask them for a payment arraignment for something that you can afford (example: monthly payments of $100.)
They would want to see proof of financial hardship, so show them either your check stubs or your bank account balance. But remember, just as others have posted, any funds, assets, or property you have in your name is vulnerable.
You mentioned "us" having cars in our name. Unless you have property under your name its not yours to give or for them to take.
If they have filed a lawsuit already, DO NOT do anything except hire a lawyer. That lawyer will defend you and probably negotiate something on your behalf.
Either way Contact an attorney experienced in this area for advice.
So don't stress out too much over debt, we all have debt, its just part of life. Pay what you can and live your life.