There is some limited things you can do here. If you are in default on a federal student loan, the U.S. Department of Education or its agent can garnish your wages without first getting a judgment. This is called an administrative garnishment. The most they can garnish is 15% of your disposable income, but not more than 30 times the minimum wage. Use this form to claim an exemption for the 10% excess.
“Disposable earnings” are those wages left after your employer has made deductions required by law, such as income taxes and child support.
2. Some federal loans have cancellation programs that apply if you are engaged in a particular type of volunteer work, such as for the Peace Corps or teaching needy populations or serving in the military. So you may want to contact them here.
3. Student loans can be discharged in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents. You must show:
1) you cannot maintain, based on current income and expenses, a “minimal” standard of living for the you and your dependents if forced to repay the student loans;
2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and
3) you have made good faith efforts to repay the loans. (Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987).