I am attempting to find assistance regarding the following student loan problem.

An illness at the end of graduate school resulted in my physical and economic collapse and student loan default. With interest and penalties, my student loan debt is now over $300,000.

Directly attributable to abusive collection practices, I remain in default unable to access repayment programs that would reduce my monthly payment. Student loan collections are currently taking over $700 per month through two wage garnishments. Subsequently, my income is insufficient to pay for necessities.
 
I am unable to pay for health care expenses. Credit rating obstructs rental housing, and I drive a thirty-two year old vehicle. Subsequent to the two student loan garnishments in place, my take-home pay was insufficient to pay for another recent hospitalization—and I was forced to give up my residence.

Without any other choices, I continue to work disabled and homeless. I assume that when my vehicle stops running, and I can no longer commute, I will also lose my employment.

Without funds, legal representation is not available to force the Department of Education to provide me access to programs pertinent to my circumstances.

In accordance with the preceding information, I am requesting any information pertinent to my situation. 

Gary,  I can’t give you advice that is specific to you, because then I’d be practicing law without a license (assuming you aren’t in NC where I have my license, in which case I’d have other professional ethics problems).  That said, read up on possible responses to the wage garnishment issue here: http://www.studentloanborrowerassistance.org/collections/government-collection-tools/admin-wage-garnishments/.

It would be a good idea to be thinking through how to get out of default.  For federal loans, loan cancellation can help a few borrowers.  Double check whether any of these circumstances apply to you: http://www.studentloanborrowerassistance.org/loan-cancellation/  Borrowers can consider rehabilitation or consolidation to get out of default.  The best resource I know of for you to learn the steps is: http://www.studentloanborrowerassistance.org/default-and-delinquency/repayment-get-out-of-default/.

Here are a few more things to think about if you have those pesky private loans.  Private collectors do not have as many collection tools as the government.  There is a lime limit for collection.  The limits are different in different sates, but tend to be six years after default.  An attorney in your state could research the statute of limitations where you are.  Often private lenders will hire collection agencies.  You have certain rights to fight back against any harassment or abuse by collection agencies.  Collection fees for private loans should be listed in the loan agreement.  There may also be other laws in your state that limit the amount of collection fees that private creditors can charge.  The main thing the private lender can do is sue you in court. Some private lenders may eventually negotiate a payment plan or debt settlement with you.  IF you have a lump sum of money, there may be some possibility of settlement of private loans: http://www.studentloanborrowerassistance.org/default-and-delinquency/compromise-settlement/, I know that isn’t an option for most of us. 

As for what to pay first when your financial circumstances are tough, it makes sense to pay first your rent, mortgage, utility payments, or other high priority debts.  I would consider federal student loans a medium priority debt because the government has so many collection tactics they can pursue (like those awful wage garnishments).  As for private student loans, I don’t see them as that different from other unsecured debt like credit cards or personal loans, and therefore low priority as compared to essential needs and lower priority than federal student loans. 

Read through this stuff carefully and you should have a clear understanding of your options.  Let me know as other questions arise.