Fortunately, if you have Federal Student Loans, you will have options to deal with your delinquency. However, you will need help from an attorney versed in these options to overcome these problems.
First, you will need to cure this default. There are two ways to do this: Consolidation and Rehabilitation. Both of these methods will improve your credit score and make you eligible for a new Repayment Plan. This will open options to you such as an Income Based Repayment Plan (also known as IBR), an Income Contingent Repayment Plan (also known as ICR), or the more recent Pay As You Earn Program (known as PAYE).
Once you have successfully consolidated or rehabilitated your payments, you may be eligible for a Student Loan Forgiveness Program.
Confused?? That is the reason why you need to employ an attorney versed in Student Loan Debt Law who can explain your options to you. That attorney should also be a bankruptcy practitioner who can also help you consider whether bankruptcy Chapter 7 or Chapter 13 has any relevance to your particular facts and circumstances.