Bankruptcy?

contact your congressman and tell him/her you problem

Hope you didn't vote for Regean, because he's who got you into this mess. On your wages, you will never get out from under this. Here's what you have to do: Turn your car and other assets over to someone you trust so that you own nothing at all worth taking. Then stop paying. They will attach your wages, but can only take a maximum of 25%. But they have to find out where you're working to do it. Never give out that information to anyone. They'll trick you into giving it out. Eventually, they'll give up, write off the loan and go away. I'm not sure how long that will take.

1st. Bankruptcy will not discharge a federal student loan. 2nd the department of education is a federal agency that works within guidelines. Regardless of who your loan is through it is they who govern the collection method and repayment options of your student loan. Truthfully your best option is to stay current on the program for 9 to 12 months. Your loan will be eligible for rehabilitation or (to be pulled from default by a new lender) at this point their are very few lenders buying those loans primarily it will be "direct loans" the lending hand of the department of education. Once you get out of default your payments may decrease based on the payment you stated. Or in the paperwork you recieve from direct loans they will offer you a 20 to 25 year repayment which will significantly lower your monthly payment. If you allow them to garnish your wages, they will also take your taxes, charge you about 15 dollars from each garnishment payment to cover the "employees who handle garnishments with collection companies" and apply most of the money to interest. So when you do get in the situation to set the payments back up you will then have a balance much larger and payments will then be 1 to 3 % of that balance. Hope this helps. What you are in is the federal loan rehabilitation program and keep in mind this will remove the derogatory trades from your credit report it is definitely a beneficial program.