Liability for student loan

In a situation such as your there are 2 forms of relief that may be available to you:  

Bankruptcy:  Generally, student loans are not dischargeable in bankruptcy but it is possible if you can prove that repaying the loan would be a severe hardship for you. However, this is a very tough standard to meet.  The court will want to know the reason that you are not paying, how hard you tried to correct the situation, and will want to review your income and expenses. 

Cancellation:  Under some conditions you may be able to cancel your student loan (either full or at least in part).  Typically economic hardship or some type of disability would qualify.

Some circumstances qualify you for cancellation only, some for both cancellation and deferment, and still others for deferment only.  The Student Loan Borrower Assistance website at www.studentloanborrowerassistance.org discusses conditions for the cancellation or deferment in more detail and how to apply for such a cancellation.  You can also contact your loan holder or the Federal Student Aid office (800-621-3115 or  http://www.ed.gov/offices/OSFAP/DCS/index.html) to determine if you qualify for cancellation.

Best of luck.