Threatening wage garnishment

I have been contacted by debt collectors threatening wage garnishment for a private student loan. last October my wife was diagnosed with cancer right about the time my student loans were coming due as a result i have not made any payments to my now defaulted student loan i am a father of 3 and in a fight with my wives cancer only make 33k a year and any money I have above my household expenses goes to medical bills ect... . the minimum payment the collection agency says that they will except to keep me from getting garnished is $269. I have told them that i could squeeze out a payment of 100 a month and they said that that would not keep me from garnishment ...
Is there anything I can do?

Yikes! Unfortunately this is how private loans work...once you are out of school they are just like any other consumer debt...and they are aggressive. Best you can do is beg for hardship.

The collection agency will be able to garnish your wages only if they can get a judgment from the court in this regard. Unless they have filed a lawsuit against you and received a judgment, they can only scare you but cannot garnish your wages. You should keep on negotiating with them and not lose your patience. There are chances that the collection agency may agree to the payments that you're offering them.

Unfortunately private student loans do sue routinely, even if you are making payments.