What can be done about a federal student loan garnishment?

You will have to work out payment arrangements with your creditors; either a lump sum discount or installment payments.  Basically, whatever you can negotiate. Either that or you can file for bankruptcy.  This will at least discharge your from your medical bills.  The student loans, however, are another matter.

Generally, student loans are not dischargeable in bankruptcy unless you can demonstrate that repaying the loan would be a severe hardship for you.  But this is an extremelytough standard to show.  The court will look at your income/expenses, your reason for non-payment, and how hard you have tried to do so. Additionally, in certain limited circumstances, you may be able to get your student loan cancelled (in full or in part).  Economic hardship or some type of disability typically qualifies. Or you may be able to at least get it deferred.

Contact the Student Loan Borrower Assistance website at www.studentloanborrowerassistance.org . 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)