IN 1979 I took out a "Direct Loan" for truck driving school. The school closed without giving notice and I was left with a $5,000 loan. I was neglectful in paying it, and many times could not because of lack of work. Now 30 years later, after I have declared bankruptcy, this loan is still active and chasing me to the tune of $23,000. How can I make a deal with the "Direct loans" to waive the interest (and perhaps penalties) and just pay off the initial principle?

First if this was not a government school loan, but a private loan, it was dismissed in the bankruptcy and they are breaking the law in chasing after you, Did you include the loan in your bankruptcy ?

If the loan was in the bankruptcy, you send them a letter with the case number and demand they no longer contact you and that they can not report any info on this loan to the credit agencies at this point.

If this was a government student loan, then you pay it, and many are allowed to garnish your wages without any further court action

If this was a Direct Loan then it is a Government Student Loan. All you have to do is contact the Dept of Education and ask for a forgiveness based on the School closing before you could finish your degree or certificate. You will have to get the information about when the school closed and if you were able to finish and if you weren't then you can have the loan forgiven and any payments you have made will be returned to you. Contact the Department of Education.
Father_Chuck you really need to research before answering. This is the second question I have had to correct for you!