The decision about whether one can discharge or not discharge in bankruptcy is determined by the court. The decision about whether one can defer or not defer is determined by the loan administrator.
I'm guessing that upon release, your friend would be (have been) an outstanding candidate for being able to discharge the loans (and penalties and interest) through a bankruptcy proceeding.
I'm guessing that upon release, your friend would be (have been) an outstanding candidate for being able to discharge the loans (and penalties and interest) through a bankruptcy proceeding.