Friend, Sounds like the loan was given to the student by the university. That is a common practice in some schools. I would write a letter to the school telling the school that you will not be able to repay the school now. Bascially tell them you can't repay the loan for now and maybe in the future you will be able to pay if you make the money. I wouldn't worry about it. Those loans are basically grants. Most American's make good money after school so that they are able to repay it. I would also thank the school for all their help. Regards