Getting Rid of a Defaulted Student Loan

• 1). Contact the creditor and create a repayment plan. Even if you will not be able to meet the terms of the agreement, it will at least stall the collections process and prevent them for suing you, freezing your checking account or garnishing your wages.
  
  
• 2). Apply for loan forbearance from the creditor. They may decide to reduce or cancel the balance of the loan if you have experienced economic hardship, particularly if it is due to a medical problem or some other circumstance beyond your control.
  
  
• 3). Contact a bankruptcy lawyer if you have a serious, chronic disability that prevents you from supporting yourself. If this is the case, you may be able to discharge a defaulted student loan by entering personal bankruptcy.
  
  
• 4). Research to determine if you are eligible for a student loan cancellation or deferment. Public school teachers, medical workers, law enforcement officers and members of the military are all eligible for many types of student loan cancellations and deferments.
  
  
• 5). Consider repaying the loan, but only after attempting to get some sort of forbearance. Unlike most other forms of debt, there is no statute of limitations for suing to collect on student loans in any state in the United States.