The Student Loan Repayment and Discharge Toolkit

Consumer Protection > Student Loans | Published 25 October 2024 - Updated 13 October 2025 | UpLaw - uplaw.us

Module 1 is a worksheet and Module 2 is eight questions. Together they take an afternoon, cost nothing, and answer more than any conversation with a servicer ever will.

Keywords: inventory, discharge screen, plans, certification, garnishment, rehabilitation, private loans

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Module 1 — Loan inventory worksheet

One row per loan. Not per servicer, not per school — per loan.

#	Servicer	Type (Direct / FFEL / Perkins / Parent / Private)	Original amount	Current balance	Rate	Status	Current plan	Cosigner?
1
2
3

How to fill it in.

The federal aid database is authoritative for federal loans. Anything not listed there is private, regardless of the servicer's name, regardless of what the school called it, and regardless of what the borrower believes.

A credit report — free under 15 U.S.C. § 1681g — surfaces the private loans and any collection accounts.

Status options: in school · grace · repayment · deferment · forbearance · delinquent · default. A borrower is frequently in three at once.

Then answer three questions at the bottom of the page:

Any loan in default? → Module 7 and Module 8. Any garnishment or offset already happening? → Module 7 first, today. Any FFEL or Perkins loan? → Module 9's consolidation matrix.

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Module 2 — Discharge screening questionnaire

Eight questions. Ask every borrower, every time.

1. Did your school close while you were enrolled, or shortly after you left? 2. Did the school tell you anything about job placement rates, starting salaries, credit transferability, accreditation, or licensure that turned out not to be true? 3. Did you enroll without a high school diploma or equivalent? 4. Are you legally barred from the occupation the program trained you for — by a criminal record, an age requirement, or a licensing rule? 5. Did you ever discover a loan in your name that you did not take out? 6. Do you have a disability that prevents substantial gainful activity — or a Social Security disability determination, or a VA disability determination? 7. [For a parent loan] Did the student die? 8. Did you withdraw from a program without the school returning money it owed?

Every "yes" is a discharge application under 20 U.S.C. § 1087 or the borrower defense provisions. File more than one where more than one applies — they are not mutually exclusive.

Why this module exists. These are the highest-value questions in student loan practice and almost nobody asks them. A borrower whose school closed may owe nothing and will pay for thirty years unless someone asks question 1.

They are applications, not arguments. The forms are free.

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Module 3 — Repayment plan comparison sheet

Compute all of it before choosing. The lowest payment is not automatically the right plan.

	Standard	Graduated	Extended	IDR plan A	IDR plan B
Monthly payment
Term	10 yr
Total paid
Counts toward PSLF?	No	No	No	Yes	Yes
Forgiveness after	—	—	—	___ yr	___ yr
Interest subsidy?	—	—	—
Negative amortization?	No	Maybe	Maybe	Likely	Likely
Spousal income counted?	—	—	—

Two computations that change answers:

Filing taxes separately can lower a payment where the plan counts joint income — at the cost of certain tax benefits. Run it both ways.

Which path ends the debt? For a borrower headed to forgiveness, negative amortization is irrelevant. For a borrower who will repay in full, it is expensive. That single question determines whether the lowest payment is the best plan or the worst one.

The statutes: income-based repayment at 20 U.S.C. § 1098e; income-contingent repayment and public service cancellation at 20 U.S.C. § 1087e; regulations at 34 C.F.R. Part 685 and 34 C.F.R. Part 682.

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Module 4 — The forbearance refusal script

Read this on the phone with a servicer. It is the highest-value thirty seconds in this toolkit.

"I do not want a forbearance."

"Please enroll me in an income-driven repayment plan and tell me what the payment would be under each plan I qualify for."

"If you are telling me I do not qualify for any income-driven plan, please tell me why, in writing."

"Please give me a confirmation number for this application and tell me the date it was received."

"Please confirm in writing that I applied for an income-driven plan today and did not request a forbearance."

Why every line is there.

Forbearance is the most expensive relief available: interest accrues on everything, capitalizes at the end, and the months do not count toward forgiveness. It is also the fastest thing for a representative to do, which is why it is offered first.

The confirmation number and the written confirmation are what make a later dispute winnable. An account showing a forbearance the borrower never requested is a servicer error worth years of qualifying payments — but only if there is a record of what was actually asked for.

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Module 5 — Employment certification tracker

For public service forgiveness. Fill in one row per year, forever.

Year	Employer	Full-time?	Certification filed	Determination received	Official count	My count	Discrepancy?

The four rules.

Certify annually and on every job change. Not at the end.

Keep every certification and every determination letter.

Keep pay records establishing employment for every month.

Compare the official count to your own after every certification, and dispute any discrepancy immediately, in writing.

Why a tracker and not a note. 20 U.S.C. § 1087e requires 120 qualifying payments, and the program fails borrowers on counting rather than on eligibility. Reconstructing a decade of employment at year ten is the characteristic failure, and this table prevents it entirely.

Before any of it works: FFEL and Perkins loans must be consolidated into a Direct Consolidation Loan, and the borrower must be in a qualifying income-driven plan. Payments under standard, graduated, or extended plans generally do not count.

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Module 6 — Wage garnishment hearing request

Thirty days. The most time-sensitive item in student loan practice.

Re: [borrower] · Account [] · Notice of proposed wage garnishment dated []

I request a hearing on the proposed administrative wage garnishment, pursuant to 20 U.S.C. § 1095a. This request is made within thirty days of the notice.

Grounds:

1. Financial hardship. My monthly take-home income is $[]. My necessary monthly expenses are $[], itemized in the enclosed financial statement: housing $[] · utilities $[] · food $[] · medical $[] · transportation to work $[] · child care $[] · other $[___]. The proposed garnishment would leave me unable to meet basic living expenses.

2. [Where applicable] The existence or amount of the debt. [State the dispute: the loan was discharged / the balance is incorrect / this is not my loan / a discharge application is pending.]

3. [Where applicable] Recent involuntary separation from employment. I was involuntarily separated from employment on [date] and have not been continuously re-employed for the period specified in the statute.

4. The terms of the repayment schedule. I propose $[___] per month.

I request that garnishment be suspended pending the hearing and decision, and that the hearing be conducted [in person / by telephone / on the written record].

Send by a method that produces a receipt, and keep it.

Two protections in the statute worth knowing by name: the cap on the percentage of disposable pay, and the anti-retaliation provision making an employer who fires or refuses to hire because of a garnishment liable to the individual.

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Module 7 — Offset dispute letter

Re: [borrower] · Notice of intent to offset dated [] / offset applied on []

I dispute this offset under 31 U.S.C. § 3716 and 31 U.S.C. § 3720 and request review.

Grounds: [the debt is not enforceable because ___ / the amount is incorrect because ___ / a discharge application is pending, filed on ___ / I have entered a satisfactory repayment arrangement effective ___ / the loan was rehabilitated / this is not my debt].

[Where the refund was joint] A portion of the offset refund is attributable to my spouse, who is not liable for this debt. An injured spouse allocation is being filed.

[Where benefits were offset] Please confirm that the protected minimum benefit amount has been observed.

Enclosed: [documentation].

On benefit offsets specifically: Lockhart v. United States, 546 U.S. 142 (2005) holds that Social Security benefits may be offset for student loan debt. The dispute is therefore about the protected minimum and about the debt itself, not about whether offset is permitted at all.

And note what does not work: age. 20 U.S.C. § 1091a eliminates the limitations period for federal student loan recovery entirely.

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Module 8 — Rehabilitation payment worksheet

The standard is "reasonable and affordable." Do not accept the first number quoted.

Monthly take-home income: $______ Necessary monthly expenses: Housing $______ · Utilities $______ · Food $______ · Medical and prescriptions $______ · Transportation to work $______ · Child care $______ · Child support paid $______ · Insurance $______ · Other required $______ Total expenses: $______ Available monthly: $______

Payment quoted by the collector: $______ Payment supported by this worksheet: $______

If the quoted payment exceeds the supported payment: submit this worksheet with documentation and request the calculation in writing.

Three facts to hold in mind.

Rehabilitation is generally available only once. A failed attempt is expensive in a way that is not recoverable — so the payment must be genuinely affordable, not optimistically affordable.

Collection costs may be added to the rehabilitated balance.

On completion, the default notation is removed from the credit report — which is the whole reason to choose rehabilitation over consolidation. Verify it afterward by pulling a report and disputing anything remaining under 15 U.S.C. § 1681i.

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Module 9 — Consolidation decision matrix

Question	If yes	If no
Are any loans FFEL or Perkins?	Consolidation is required for most programs	Consolidation may be unnecessary
Is public service forgiveness the goal?	Consolidate now — the count restarts, so earlier is better	Weigh separately
Is there a Perkins loan with occupation-based cancellation available?	Compute what consolidation forfeits before consolidating	—
Are any qualifying payments already accumulated on Direct Loans?	Consolidating those loans restarts their count — consider consolidating only the FFEL/Perkins loans	—
Is a loan in default?	Consolidation is a faster cure than rehabilitation — but does not remove the credit notation	—
Is this a parent loan?	Consolidation unlocks a limited income-contingent option — usually the single most valuable move available	—
Is speed the priority?	Consolidation: weeks	Rehabilitation: ten months
Does the credit report matter?	Rehabilitation, not consolidation	—

The trap that costs the most: consolidating loans that already carry qualifying payments, and restarting the count on all of them. Consolidate selectively.

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Module 10 — Private loan defense outline

A different analysis entirely. Nothing in Modules 2 through 9 applies.

I. Confirm it is private. Not in the federal aid database.

II. Obtain the promissory note. The contract governs everything.

III. If not yet in suit. Ask about hardship programs — none is required, some exist. Check for a cosigner release provision and apply if the conditions are met. Note that release is never automatic.

IV. If sued — and this is where cases are lost:

Answer the complaint. A default judgment is the most common and most avoidable outcome in consumer debt litigation.

Plead the statute of limitations if the state period has run. It is waived if not raised.

Demand proof of ownership — the complete chain of assignments from the original lender.

Demand the note, the disbursement records, and the complete payment history.

Screen the collector's conduct — 15 U.S.C. § 1692e (false representations) · 15 U.S.C. § 1692f (unfair practices) · 15 U.S.C. § 1692d (harassment) · 15 U.S.C. § 1692c (communications) · with damages at 15 U.S.C. § 1692k.

Send a validation request under 15 U.S.C. § 1692g.

V. In bankruptcy. Check whether the loan falls outside 11 U.S.C. § 523 — a loan exceeding the cost of attendance, or not made under a qualifying program, may be ordinarily dischargeable. A genuine and underused argument.

VI. Never refinance federal loans into a private loan without working through the irreversibility. Every federal protection is forfeited permanently.

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Module 11 — Servicer escalation ladder

In order. Each step generates a written record, and the record is the point.

1. Written dispute to the servicer, with documentation, keeping a copy and the response. 2. The servicer's formal complaint process, not the phone line. 3. The Federal Student Aid ombudsman. 4. The Consumer Financial Protection Bureau complaint process. 5. The state attorney general. 6. For private loans and private collectors: litigation, under the FDCPA and FCRA provisions above, including 15 U.S.C. § 1681n and 15 U.S.C. § 1681o.

The six recurring servicer errors to look for: misapplied payments · a forbearance recorded where a plan was requested · a lost recertification · a wrong qualifying payment count · history lost in a servicing transfer · and bad verbal advice.

Reporting errors are governed by 15 U.S.C. § 1681e (accuracy), 15 U.S.C. § 1681i (reinvestigation), 15 U.S.C. § 1681c (reporting limits), and 15 U.S.C. § 1681b (permissible purposes). A rehabilitated loan still reported as defaulted is a reporting error with a statutory remedy.

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Module 12 — Scam recognition card

Every federal application in this toolkit is free. Consolidation, income-driven enrollment, rehabilitation, forgiveness, and every discharge. Free.

Signal	Why it is a signal
A fee to enroll in a federal program	The company is charging for typing
"Immediate forgiveness"	Public service cancellation requires 120 payments; income-driven forgiveness requires 20–25 years
A power of attorney or third-party authorization	Lets them change plans, redirect mail, and collect payments the servicer never sees
A request for federal aid account credentials	Never share them. No legitimate advisor needs them
"This program is ending — act today"	The statutory programs do not end on a cold caller's timetable
A government-sounding name or seal	The Department does not cold-call to sell services

Remedies where a borrower has already been caught: the FDCPA provisions in Module 11 · the FTC Act's prohibition on unfair or deceptive acts at 15 U.S.C. § 45 · and state consumer statutes. See Consumer Protection Law: A Comprehensive Guide to the FDCPA, FCRA, TCPA, and State UDAP Statutes and The Consumer Protection and Credit Toolkit.

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Module 13 — The recurring calendar

Set these once. They run for the life of the loan.

Income recertification — due [month]. Reminders at 60 days and 30 days. Public service employment certification — due [month], and immediately on any job change. Payment count audit — after every certification. Compare official to Module 5. Credit report review — annually, free under 15 U.S.C. § 1681g. Address update — with every servicer and the Department, whenever it changes. Discharge re-screen — after any change in health, or any news about the school. Plan re-evaluation — after any significant change in income or family size. A mid-year recalculation is available.

Two of these recur annually, are not reliably announced, and are the borrower's responsibility. Each failure costs money; the employment certification failure costs years.

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Module 14 — Reference tables

Authorities

Authority	Proposition
20 U.S.C. § 1070	Purpose; grants
20 U.S.C. § 1071 · § 1078	The FFEL program
20 U.S.C. § 1087	Discharges
20 U.S.C. § 1087e	Direct Loans; public service cancellation
20 U.S.C. § 1091 · § 1091a	Eligibility; no limitations period
20 U.S.C. § 1095a	Administrative wage garnishment; 30-day hearing
20 U.S.C. § 1098e	Income-based repayment
31 U.S.C. § 3716 · § 3720	Offset
11 U.S.C. § 523 · § 362 · § 1322	Discharge exception; stay; plan
34 C.F.R. Part 685 · Part 682	Direct Loan and FFEL regulations
15 U.S.C. §§ 1692–1692k	Debt collection
15 U.S.C. §§ 1681–1681o	Credit reporting
15 U.S.C. § 45	Unfair or deceptive acts
Lockhart	Social Security benefits may be offset
Department of Education v. Brown	Standing to challenge a cancellation program

Vocabulary

Direct Loan — where the good programs live. FFEL — the old guaranteed program; needs consolidation. Perkins — institutional; has its own cancellation, forfeited by consolidation. IDR — income-driven repayment. PSLF — public service loan forgiveness; 120 qualifying payments. Qualifying payment — made on time, in a qualifying plan, on a Direct Loan, while in qualifying employment. A zero payment qualifies. Capitalization — accrued interest added to principal, after which it earns interest. Forbearance — payment pause; interest accrues and capitalizes; months do not count. Default — generally 270 days. Rehabilitation — nine affordable payments; removes the default from the credit report; once only. Consolidation — a new loan paying off the old ones; restarts the count. AWG — administrative wage garnishment, without a court.

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Module 15 — Where this connects

The narrative and the doctrine. The Debt That Follows You: Why Student Loans Behave Unlike Any Other Obligation and Student Loans: A Comprehensive Guide to Repayment, Default, Forgiveness, and Discharge.

The step-by-step. Fixing a Student Loan Problem: A Practical Checklist.

Private loan litigation and credit reporting. Sued by a Stranger: Debt Buyers, Default Judgments, and the Consumer Who Shows Up · Consumer Credit Reporting and Debt Collection: A Comprehensive Guide to the FCRA, FDCPA, and Identity Theft Remedies · Disputing a Credit Report Error and Defending a Debt Collection Suit: A Practical Checklist · The Consumer Debt and Credit Reporting Toolkit · Consumer Financial Services Regulation: A Comprehensive Guide to TILA, ECOA, RESPA, EFTA, and UDAAP.

Bankruptcy. Consumer Bankruptcy: A Comprehensive Guide to Chapter 7, Chapter 13, Exemptions, and Discharge · Preparing and Filing a Consumer Bankruptcy Case: A Practical Checklist · The Consumer Bankruptcy Toolkit.

Disability, where a discharge is available. Social Security Disability: A Comprehensive Guide to SSDI, SSI, and the Appeals Process · Filing and Appealing a Social Security Disability Claim: A Practical Checklist. The same medical record serves both.

Where an intercepted refund is really a tax question. Responding to an IRS Notice, Audit, or Collection Action: A Practical Checklist and The Individual Tax Controversy Toolkit.

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Module 16 — Adjacent problems in the same file

Student debt rarely arrives alone. Five neighbors, and the question at intake that finds each of them.

"Is anything else being garnished or collected?" A borrower facing student loan garnishment frequently has other judgments running at the same time, with different rules and different exemptions. See Enforcing a Money Judgment: A Comprehensive Guide to Discovery, Liens, Levy, and Fraudulent Transfer and The Judgment Enforcement and Creditor Remedies Toolkit.

"Did you get a tax refund last year?" If not, the offset already happened and nobody explained it. That is Module 7, and it is frequently also an injured spouse question — see The Letter From the IRS: What Each Notice Means and Which Ones Have Deadlines and Tax Controversy for Individuals: A Comprehensive Guide to Notices, Audits, Appeals, and Collection.

"Are you working?" Employment status drives the income-driven calculation, the garnishment protections in 20 U.S.C. § 1095a, and whether a public service path exists at all. Where a job loss was wrongful, that is its own matter — see Fired, Quit, or Laid Off: How Unemployment Eligibility Is Actually Decided and The Unemployment Insurance Toolkit.

"Are you a veteran?" A VA disability determination can support a total and permanent disability discharge under 20 U.S.C. § 1087. See Veterans Benefits: A Comprehensive Guide to Service Connection, Ratings, and Appeals and The Veterans Benefits Claim and Appeal Toolkit. The same determination does double duty.

"Is anyone else on these loans?" A cosigner or a parent borrower has their own exposure, their own release provisions, and — for parents — the consolidation move in Module 9 that nobody tells them about.

The common feature: each of these is discovered by a question, not by an argument. The five questions take four minutes.

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Related Documents

Articles

• The Debt That Follows You: Why Student Loans Behave Unlike Any Other Obligation
• Sued by a Stranger: Debt Buyers, Default Judgments, and the Consumer Who Shows Up

Guides

• Student Loans: A Comprehensive Guide to Repayment, Default, Forgiveness, and Discharge
• Consumer Credit Reporting and Debt Collection: A Comprehensive Guide to the FCRA, FDCPA, and Identity Theft Remedies

Checklists

• Fixing a Student Loan Problem: A Practical Checklist
• Disputing a Credit Report Error and Defending a Debt Collection Suit: A Practical Checklist

Toolkits

• The Consumer Debt and Credit Reporting Toolkit
• The Consumer Protection and Credit Toolkit