Federal Student Loans

I have loans that are already consolidated and I'm trying to work with the company NCO Financial through ASA to get a payment arrangment set up. I give them all of my information in honesty because I want them to know that I am and willing to cooperate to get my loans paid back. They give me an option to pay 900.00 for the last month, which was one week and a half at the time when they asked, PLUS an additional 900.00 for this month of July to get me out of default and on a payment arrangement. This was the only reasonable option given to me other than paying 15 - 20 % down to start a payment arrangement. Needless to say, there was no way I could afford that if my wife just got laid off from her job and still pay rent, not a mortgage, but rent! So I decline their offer and than a week later I get a letter in the mail from them saying that they will garnish my wages unless I can come up with all of the money or try to work out another payment arrangement, which I was told those were the only options I have for the time being and nothing else will be extended in assisting me take care of this problem.
How can all of this be avoided and a true honest recession proof payment plan work in all favors where I would not have to worry about all of lies and stipulations. We are actually talking about my future and life here, not just money as if I have it in the bank or hidden in a chest in the ocean somewhere!