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Ceera

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Bankruptcy and student loans
I have little debt except my student loans that total over $83,000. My life's circumstances changed dramatically two years into college. Struck with cancer, divorce and two very young daughters I found myself struggling just to keep a roof over us. I am on disability and food stamps. The student loans went into default after I ran out of deferment and forbearance options. ACT contacted me trying to collect on this debt, threatening to garnish my disability which is only 685.00/month. They want me to agree to pay them $391.00 each month or they will go forward with garnishment procedures. Any suggestions would be greatly appreciated!

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Federal Student Loans can be discharged

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if you are on SSDI; it's a simple process and you can apply for this either through your Student Loan Servicers or directly to the Department of Education/Nelnet.  The process for me took about three months and during that time, the loans were freezed and I id not owe payments.  You have to complete paperwork and furnish proof of SSDI.  Sadly Private Student Loans follow you forever.  You may be able to find someone who will consolidate them in essence lowering payments.  This though is getting more and more difficult to do.     Correct per jwsister, student loans can not be forgiven/discharged in Bankruptcy.

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You might want to start reading at
http://studentaid.ed.gov/repay-loans/forgiveness-cancellation

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Unfortunately, thanks to revisions in the Bankruptcy Act several years aog, student loans generally cannot be discharged in bankruptcy and remain collectable until paid in full.  Contact the loan servicer and see about getting a payment reduction or hardship discharge, especially since your income is well below the poverty level.

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