If you're in default and are so overwhelmed you're considering bankruptcy, consider rehabilitating your loans first to
potentially get a lower monthly payment and your loans into good standing.
+ During the interest only term your
monthly payments are as
low as they can possibly
get; + You can qualify for a larger loan amount, maybe even a larger home; + During the interest only term you won't pay out cash to build equity; + Make investments with
payment difference to
potentially build your net worth; + The entire
monthly payment qualifies as tax - deductible interest during the interest only period.