The government’s collection powers and your options to deal with student loan problems depend on whether you are just delinquent with your payments or whether you are in default. You are in default on most student loans if you fail to make payments for nine months. The entire loan balance becomes due once you default...

Student loans are difficult, but not impossible, to discharge in bankruptcy.  To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”