Evaluate your current level of debt. Based on the paperwork that your loan agency provided you when you first signed up for the loan, as well as the statements you receive periodically, determine exactly how much you currently owe, comparing that amount with what you should owe based on your initial agreement. If there is a discrepancy, note the difference.
Create a case for challenging your loans. In most cases, you will not be allowed to challenge your student loans even if you declare bankruptcy, as student loans are one type of debt not discharged in bankruptcy. In certain cases, you can challenge your loans and ask that they be forgiven. Research several factors including, the loans may not be enforceable if your school closed or if there has been your school committed fraud when handling your loan. Similarly, personal factors may allow you to effectively challenge your loan. If you have been a teacher in a low-income elementary or secondary school for at least five years, or if you have worked in public service and made 120 repayments under certain plans, you may be eligible to have part or all of your loan forgiven, depending on the type of loan you have. If you are totally and permanently disabled you may be eligible to have your loans forgiven with a supporting doctor's statement according to the U.S. Department of Education.
Prove your allegations. You will require proof, in the forms of bills and other documents, to show that the school has acted wrongfully or ceased its operations. Similarly, if you qualify for the "undue hardship" qualification to discharge your loan, submit proof of income to demonstrate hardship.
Seek a bankruptcy lawyer. With your paperwork in hand, visit a lawyer specializing in bankruptcy. If the problem lies with your financial situation, your lawyer can challenge your loan. If you are challenging the loan due to school closing or wrongful conduct, call the Department of Education's Loan Program Service Center at 800-848-0979 to request a cancellation form. Or, you can contact the service center handling your private student loan for a remedy.