PSLF Waiver

PLSF Waiver

Student loans are some of the most common debts Americans face. They total over $1.6 trillion — 92% of which fall under the federal debt category. However, the government provides borrowers with various debt relief plans, like the Public
Loan Service Forgiveness (PSLF) Program. While it offers a unique method to wipe out all your federal student loan debt, the process can also be tricky.

Many individuals who got denied for PSLF or Temporary Expanded Public Loan Forgiveness (TEPSLF) don’t realize they can get credit for past payments under the limited PSLF Waiver. They can enjoy such benefits even if they didn’t make payments in time, pay the full amount due, or use the right repayment plan. This article will discuss everything you need to know about the PSLF Waiver and the steps you need to take to earn all its advantages.

What is the PSLF Waiver?

The PSLF Waiver is a temporary program designed to help select public service workers achieve loan forgiveness. This limited opportunity eases many of the rigid rules for PSLF and TEPSLF initiatives — both of which only have a 2.1% approval rate. Its goal is to boost these disappointing acceptance figures.

Here’s how it works. PSLF requires 120 Qualifying Payments (QP) for loan forgiveness. However, the PSLF Waiver gives teachers, nurses, military members, and other public servants a chance to reach as far back as 2007 and make qualifying payments today. If you have 120 QP, you may be eligible for the retroactive student loan forgiveness!

Note that the PSLF Waiver will sidestep some of the program’s more stringent regulations and will accept the following payment types:

  • Remittances for the Federal Perkins Program and Federal Family Education Loan
  • Program
  • Payments made for a non-qualifying repayment plan
  • Delayed remittances
  • Past partial payments
  • Remittances by military service members while on active duty, even loan deferment or forbearance not being repaid

While the plan may sound like a dream come true, there is one critical catch. The PSLF Waiver is only valid until October 31, 2022. We suggest starting now if you want to enjoy its perks.

Benefits of the PSLF Waiver

The PSLF Waiver doesn’t change PSLF’s core requirements, including having a direct or direct consolidation loan, making 120 qualifying payments, and working full-time for the government or a non-profit organization. However, it offers life-changing advantages for qualified individuals. Let’s look at some of its more notable benefits below:

Increase the Number of Qualifying Payments

On October 6, 2021, the U.S. Department of Education (ED) announced the effectiveness of the PSLF Waiver in response to the COVID-19 pandemic. From that date until October 31, 2022, qualified individuals may receive credit for past repayment periods dating as far back as 2007. This program should help public servants get closer to their loan forgiveness

Enjoy Tax-Free Forgiveness

The Internal Revenue Service (IRS) doesn’t tax loan amounts forgiven under the PSLF program. For this reason, you don’t have to worry about taxes and interest in making PSLF Waiver payments.

Enhance Financial Standing

Once you qualify for the PSLF Waiver Program, your debt-to-income ratio will improve, helping you gain access to other loans you might need. Also, it will boost your credit score, making it easier to apply for other lines of credit.

Who Is Eligible for the PSLF Waiver?

The PSLF Waiver applies to direct loan borrowers who work (or have worked) full-time in Public Service Jobs since October of 2007.

You May Need to Consolidate

The changes under this program affect student loan borrowers with direct loans, those who have completed consolidation into the Direct Loan Program, and those who correctly apply for consolidation by October 31, 2022. Under the PSLF Waiver, you can apply for PSLF and consolidate your loan before the deadline to receive qualifying credit for your payments. Note that it covers loans under the William D. Ford Federal Direct Loan Program, but does not include repayment periods for
parent PLUS loans.

Sign Up for the Ultimate PSLF Waiver Course Now

The PSLF Waiver Program offers public servants a fast and convenient way to achieve student loan debt forgiveness. Our course, PSLF Waiver: Get It Right, provides you with the knowledge and tools you need to get approved — no matter what it takes! Our goal is to guide qualified individuals through the red tape, confusing jargon, and information overload. The process may seem overwhelming, but it’s not.

Here’s what you need to do to receive PSLF Waiver benefits:

  • Apply for your waiver: If you have at least one Direct Loan and one approved PSLF form, you qualify for the PSLF Waiver.
  • Complete the consolidation process (If Necessary) : Most applicants need to consolidate their loans to qualify for the PSLF Waiver. Consolidating student loans can be confusing. Our course will help you determine if consolidation is needed for approval of your PSLF Waiver. If so, then it will lead you through our simple step-by-step process.
  • Connect with experts: With an affordable $99 investment, you gain access to our customer care team. You can reach out to our specialists through your Udeany page or our members-only Facebook community. We will be here every step of the way
    until your waiver is approved.
  • Stay on track: We know how challenging it is to acquire 120 qualifying payments. Many people will need to continue accumulating payments even after their Waiver has been approved. Our course helps you stay on track, qualify for the lowest payment possible, and therefore have more of your student loan debt forgiven.
  • Achieve forgiveness: The PSLF Waiver may help you achieve instant forgiveness or it may help you get much closer to the finish line. When you purchase our course, you get a simple plan of action and a clear understanding of the steps necessary to achieve total (and tax-free!) forgiveness of all your federal student loan debt.

Remember, the PSLF Waiver Program is only valid until October 31, 2022. “PSLF Waiver: Get It Right” provides qualified applicants with the fastest, simplest, and most affordable solution to student loan forgiveness. Enroll now to achieve the financial freedom you deserve.

Public Service Loan Forgiveness: How to Erase Your Debt with PSLF

We at Udeany have added a new course to help guide you through the difficult and confusing process of public service loan forgiveness. Check out our course!

What is PSLF?

Public Service Loan Forgiveness is a program designed to provide relief to student loan borrowers who work in public service fields by canceling loan debt after 10 years.

This program has the potential to save you thousands of dollars! There’s no better student aid forgiveness program, and we can show you how to take advantage of its benefits.

How to Escape Student Loan Default

[Transcript of video]

Defaulted Student Loans Fixed Fast

Hello, my name is Alton Criswell. I am the founder of Udeany and creator of the Udeany Process. And what is the Udeany Process? It’s a system of steps to help you find and fix your defaulted student loans in the shortest time possible.

The Udeany program is built for speed. We understand days matter if you are trying to go back to school, collect your income tax refund, or close on your dream home!

During the process, we also want to look at federal student loan forgiveness and discharge programs. Hopefully one or more of those programs can help you erase some (or all) of your student loan debt. If so, then we want you to know it.

How Student Loands Become Defaulted

Now let’s talk about student loan default real fast. Not sure if you are in default? Here’s the question:
Are your student loans more than 9 months behind? If yes, then they are considered defaulted and you have been sent to collections. It’s that simple.

This can lead to 5 specific problems:

  1. They will take away your financial aid. If you need more classes you will most likely need to pay for them out of pocket.
  2. You will be added to the Treasury Offset Program — TOP for short. TOP allows them to intercept your income tax refund before the money makes it to your bank. Not cool! If you are expecting a refund, you might want to hold off filing your taxes until you are out of default and off TOP.
  3. You will be placed on CAIVRS. Never heard of CAIVRS? You are not alone. CAIVRS is a secret list used by the banks. Once your name is added to CAIVRS you cannot qualify for a federally backed mortgage until you are REMOVED from the list. This can make it extremely difficult to buy a house.
  4. Eventually you will be flagged for AWG. AWG stands for Administrative Wage Garnishment. They can slap a 15% wage garnishment to your paycheck without even taking you to court!
  5. And finally, you will be sent to the DOJ. When all else fails, they will send your student loans to The Department of Justice for litigation. Not good. No more Mr. Nice guy.

Options For Escaping Student Loan Default

As you can see, the longer you wait the worse things get. The sooner you act the better — you have more options.

There are 4 possible ways to escape student loan default:

  1. Settlement: It’s possible to settle student loan debt. You can erase all the collection costs if you can pay the principal and interest in one lump sum.
  2. Student Loan Discharge: In rare circumstances, federal student loans can be discharged. If you are Totally and Permanently Disabled this may be a quick solution. Other discharge options exist but could take considerable longer to be approved (like years!).
  3. Student Loan Rehabilitation: If you can make 9 on-time payments in a 10 month period then your loans will be removed from default. Long program but better than nothing!
  4. Student Loan Consolidation: It’s possible to pay off defaulted loans through consolidation. You get a new loan and a second chance. This can help you escape default in weeks instead of months!

Fix Your Loans With the Udeany Process

So what should you do?

Fix it yourself with our help.

Here are 8 reasons why:

  1. You need a guide. You can get out of the maze but you need to know where to go. One wrong move can cost you a lot of time and money. Plus, sometimes you do not get a second chance. Best to have an experienced guide using a proven process (we have helped hundreds of people escape default).
  2. Go at your pace with full support. Because it’s an e-course you can start anytime you are ready (day or night). You will be taking the steps to fix your loans as you move along. When you purchase the course you get the full support of Udeany and access to our private Facebook group. If you get stuck just reach out. We will help you find a solution.
  3. We allow you to keep your private info private. No one likes giving their social security number, date of birth, or banking info to some stranger over the phone. Our course allows you enter your private information into secure government sites as you move along. No need to give it out to us — or anyone else for that matter! It’s called private info for a reason.
  4. Eliminate frustrating delays. This stuff is not random. Being approved or denied is not a matter of luck. Our course helps know what you can or can’t do. It also helps you identify potential problems (like wage garnishment tags) so you fix them before making your application (if possible). This kind of preparation will help you save time and avoid frustration.
  5. Evaluate all of your Forgiveness and Discharge options. There are about a dozen different ways loans forgiven or discharged (yes, there’s a slight difference). Some are far better than others. Our course helps you determine your eligibility for one or more of these programs. We do so in a clear, concise, and thorough manner.
  6. We help you avoid returning to default. Many people escape default just to return again. This is especially true when it comes to rehab. Our course helps solve that problem. Your knowledge and understanding will grow exponentially as you pass through our courses. By the time you complete the course, you will be in complete control of your student debt.
  7. We offer a money-back guarantee. Full disclosure: Not everyone can escape from default. There are certain situations where nothing can be done (like if your loans are at the DOJ). Thankfully, it’s rare (about 5%). When that happens we will refund your money.
  8. And last — but certainly not least: Our program is built for speed. Do you have an urgent need to get out of default as fast as possible? Well, that’s what our process is designed to do. If you are eligible to consolidate (about 85% chance) then our course is going to tell you how to do fast — real fast. And how fast is fast? Our company record is 11 calendar days.

Get Started Today!

Do you have a need for speed? Are you ready to see if you can break the company record? Well, there is no better time than now.

For a limited time, the course is 50% off! Take a look at our course.

We’re still finalizing the course, so you will also have the opportunity to be a part of the process and therefore get more personal attention. We will be taking your feedback into consideration as we move along. It will help us improve the final product.

There you have it, Folks. Ready when you are to get started. If you want to learn more, read some of our other articles.

CAIVRS Report: How to Get Your Name Off of It

For help clearing your CAIVRS report in as little as 12 days, please view our site dedicated to clearing your CAIVRS report. We guarantee you’ll get your name off the CAIVRS report or your money back.

Clear Your CAIVRS Report

Is your name on the CAIVRS list? Don’t worry; Udeany is here to help you.

According to the Center for American Progress, about 43 million adult Americans—roughly one-sixth of the U.S. population older than age 18 currently carry a federal student loan and owe $1.5 trillion in federal student loan debt, plus an estimated $119 billion in student loans from private sources that are not backed by the government. With data like that, it is not surprising that many Americans find themselves mixed up in the maze of student loan default and all of the challenges that go along with it.

If you are one of the many people who find themselves in default, it can be detrimental for several reasons, one of which is realizing the dream of owning a home or starting a business.

How Your Name Gets Added to CAIVRS

When federal student loans go into default, one of the first things they do is add your name to the Credit Alert Verification Reporting System, otherwise referred to as CAIVRS. Once added to this list, it prevents you from qualifying for a government-backed loan (i.e. Federal Housing Authority Home Loans or USDA loans that assist with down payments).

Qualifying for these kinds of loans are especially important because they often have fewer restrictions and requirements associated with them than traditional bank loans. Unless you are granted a waiver, there is no way to qualify for these government-backed loans until your name is removed from CAIVRS.

Being on CAIVRS means you won’t qualify for loans backed by the following entities:

  • Federal Housing Authority (FHA)
  • Veterans Administration (VA)
  • Small Business Authority (SBA)
  • Native American Direct Loan (NADL)
  • United States Department of Agriculture (USDA)

How to Get Your Name Off CAIVRS

Although the above information sounds scary, if your name is on CAIVRS because of defaulted student loans, there are brighter days ahead.

There is an excellent chance it can be cleared up quickly – within days even – but navigating the process alone is tricky for several reasons:

  • You cannot check the CAIVRS Report to see if your name is on it. Only lenders have access to the database. There is a means to appeal CAIVRS errors, but it can be quite challenging since you cannot directly access the report. You will need to work with a lender who can provide you a copy.
  • There is no connection between CAIVRS and the credit reporting agencies. This is why credit repair does not work when it comes to CAIVRS.
  • You can only be removed from CAIVRS by the entity who placed you on the list. Typically, for defaulted student loans, that would be the Default Resolution Group (DRG) or a Debt Management and Collections System.

The fastest way to clear CAIVRS is to fix it yourself with the help of experts at Udeany. We take you through our proven method, supporting you every step of the way. Unlike items on your credit report which can take several years to correct, CAIVRS does not store a visible history. Once your name is removed (like from defaulted student loans) you will “pass” that section and it will be as if it never happened.

Methods For Clearing Your Name From the Default List

So, what’s the first step to getting the house or starting the business you’ve always dreamed of? Work with the experts at Udeany to get out of default and clear your name from CAIVRS once and for all.

Step 1
If you are like most people, you have not seen your student loans in years. The first thing you need to know is how to find your student loans.

The Udeany e-courses can help you find all your student loans.

Step 2
Attempt to consolidate your student loans through a Direct Consolidation Loan or through student loan rehabilitation.

Your name should be removed from CAIVRS within 30 days of being removed from default. This can be sped up considerably by calling the Default Resolution Group (DRG) once you are sure they have received notification that the consolidation is complete or that the rehabilitation program has been completed.

Ready to get started immediately? Udeany has e-courses designed to lead you through every step necessary in order to escape student loan default. Jump straight to the course and complete the first step, The Easiest Way to Find Your Student Loans, for free. Let Udeany help you take back control of your financial future so that you can build the life you’re meant to live without the burden of student loan default holding you back.

How To Escape Student Loan Wage Garnishment

Few things will ruin your work day more than a notice from Human Resources that you have been hit with a wage garnishment. If this has happened to you, hang tight. I will dive into solutions momentarily.

On the other hand, if you are reading this because of a nasty letter from a collection company then I urge you to contact us without delay. “An ounce of prevention is worth a pound of cure.” — this is especially true when it comes to wage garnishment. Let’s talk asap. There’s no time to waste.

Who is garnishing my wages?

The first step to freedom is to find out who is doing the garnishing and how much they are after. Work your way down this list until you get the agency’s name, phone number, and account balance.


If it was human resources who dropped the news on you then call them back. Ask them for the name and number of who is garnishing you. As a bonus, go ahead and ask them the total amount to be garnished.

Gathered your info? Skip to “Can My Debt Be Discharged?”.


Sometimes it may not be possible (or desirable) to contact human resources.  The next place to check is with Debt Management and Collection System (also known as the Default Resolution Group). Their number is: (800) 621-3115.

When you call, enter your personal information — SSN and DOB — into the automated system. If a third party collection company is handling your account then you will be given their name and phone number at this time. Please write down this information.

(If no other collection company is mentioned then your loans are most likely being handled “in house” by Debt Management and Collection System).

Next you will be given several options, including checking your account balance. Go ahead and select this option. Write down the information and end the call.

Occasionally, the Debt Management and Collection System will not have your information. When this happens, you will automatically be transferred upon entering your SSN. If this happens speak to the agent. They have direct access to the NSLDS (National Student Loan Data System) and may be able to get the info you need without having to create an account (more on this later).

Gathered your info? Skip to “Can My Debt Be Discharged?”.


Still don’t have your information? It’s time to get a little more creative. Start searching for emails and letters from collection companies. Make sure to be thorough because there can be more than one company handling your case. Find them all and write them down.

Gathered your info? Skip to “Can My Debt Be Discharged?”.


NSLDS stands for National Student Loan Data System. All federal student loans are supposed to be listed in the database — “supposed” being the operative word. Way too often, loans (or entire portfolios) are missing.

Gaining access to the database can be notoriously tricky. There are a litany of common occurrences that can lock you out and lead to weeks of frustration: name changes, lost passwords, unverified email accounts, typographical errors, etc.  For these reasons, I recommend contacting FSA ID Help at (800) 433-3243 when accessing the database for the first time. Follow the automated prompts to speak to a live agent. They can walk you through creating a FSA ID and expedite any problems that may arise in the process.

Gathered your info? Skip to “Can My Debt Be Discharged?”.


Next on the list: contact the financial aid department for all the schools you have attended. Give them a call and ask them to fax your student loan records to you. Typically, they will either honor your request or give you the phone number to call for the collection company handling your account (bingo).

Gathered your info? Skip to “Can My Debt Be Discharged?”.


When all else fails, check your credit reports. Believe it or not credit reports are typically the least reliable sources. Their info is usually either incomplete or “sketchy”. That’s why if you go this route it’s important to check them all (Experian, Equifax, and TransUnion).

Can My Debt Be Discharged?

Now for the fun part:

What if there is a way to instantly discharge (as in erase!) some or all of your defaulted student loan debt? It’s possible. Seen it many times. Only way to know if it can happen for you is to take a quick look at the various methods.

Let’s go:


In my experience, TPD Discharge is the most common method for discharging federal student loan debt. For those that qualify, it’s a fast and complete way to wipe out defaulted student loan debt (and therefore, any wage garnishments!). A real silver lining for those that are disabled.

TPD stands for Total and Permanent Disability, but don’t let the name fool you. You can work and even earn up to $15,000 per year (or a little more) and still qualify—provided you meet other criteria.

If there is even a chance you may qualify for TPD Discharge I encourage you to give them a call: (888) 303-7818. They are very courteous and will help guide you through the entire process.


The second most common method is called “School Closure Discharge”. Keeping things simple, if you ever attended a school that closed you should take a look at the application. This is true even if you withdrew.

Here is a link to the form. It’s a fill-able PDF. If you get all the way through the form print it, sign it, and fax it to the collection company that applied your wage garnishment. Then mail a “hard copy” to:

  • The US Department of Education
  • PO Box 5609
  • Greenville, TX 75403-5609

NOTE: If you attended a college and did not complete your schooling might be worth a quick “Google search” to see if the school closed shortly after your departure.


This method is making a lot of news lately. They have recently reworked the process and are once again reviewing applications.

To sum up Borrowers Defense of Repayment, you simply have to ask yourself this simple question: “Did the school mislead me (in any way) to get me to enroll?”.

Information such as (but not limited to):

  • Employment prospects
  • Program costs and nature of loans
  • Transferring credits
  • Career services
  • Admissions and urgency to enroll
  • Legal actions against the school

If you felt misled, I strongly urge you to apply. The easiest way is the online process. Here is the link: Borrowers Defense of Repayment. Please call (855) 279-6207 for help or to check the status of an application.

NOTE: Before you complete the application you will be asked if you would like to request your loans be placed in “stopped collections status”. If you say “yes”, here’s what will happen (in their words):

This means that the federal government or debt collection companies will stop attempting to collect on the loans, including by not withholding money from your wages or income tax refunds. Stopped collections status will continue until the borrower defense review process of your application is completed.



Say what?

In other words:

If you enrolled in a school and did not have either a high school diploma or GED then you need to take a look at False Certification of Ability to Benefit Discharge. It’s a fill-able PDF. If you get all the way through the form print it, sign it, and fax it to the collection company that applied your wage garnishment. Then mail a “hard copy” to:

  • The US Department of Education
    • PO Box 5609
    • Greenville, TX 75403-5609

NOTE: This form may also be used for parent PLUS borrowers.


Where do they get these titles?

In simple English:

Would your age, physical condition, mental condition, criminal record, or any other reason make it impossible to use your education to get a job? Then False Certification: Disqualifying Status Discharge is what you should try. The rationale being that the school should have vetted you more carefully, since they should have known the education would be a waste of money.

NOTE: This form may also be used for parent PLUS borrowers.


Here’s the question:

Did anyone forge your name to help you obtain federal student loans or to make a payment?

If so, then take a look at False Certification: Unauthorized Signature/Payment Discharge. Once you complete the form print it, sign it, and fax it to the collection company that applied your wage garnishment. Then mail a “hard copy” to:

  • The US Department of Education
  • PO Box 5609
  • Greenville, TX 75403-5609

NOTE: This form may also be used for parent PLUS borrowers.

Unpaid Refund Discharge

And finally:

Even when considering collection cost (which can be thousands) does it seem like the full loan amount is too high? If so the school may owe you a refund. Carefully examine your student loan portfolio and let the Unpaid Refund Discharge Form guide you through the process.

NOTE: This form may also be used for parent PLUS borrowers.

Let’s get prepared.

Luck is what happens when preparation meets opportunity.


This next step is all about preparation. You are about to call the collection company to “negotiate” (for the lack of a better term) for your freedom. You definitely want to be prepared.

(I would encourage you to take this step even if you applied for discharge, since there are no guarantees you will be approved. Plus the discharge process can take months.)

Gather documents

Getting out of wage garnishment almost-always involves either making additional payments (which can be as low as $5) or appealing to a “high power” (Requesting a Hearing). The former being easier (and far more common) than the latter. Thankfully, both methods require the same documentation.

  • Tax returns

Have you filed a tax return within the last two years? If so, then please get a copy of the first two pages. If not, then you will have to go with pay stubs only.

TIP: Can’t find your tax returns? You can request a copy straight from the IRS.

  • Pay-stubs

Grab copies of your two most recent pay stubs. Make a note on your pay stubs how often you get paid (weekly, monthly, bi-weekly, etc).

  • Financial Disclosure Statement

And finally, prepare a Financial Disclosure Statement.

Don’t let this step freak you out. It’s not near as hard as you would imagine and it can save you hundreds or even thousands of dollars. You gotta do it. Suck it up and knock it out now.

Here’s the link: Financial Disclosure Statement

As you complete the fill-able PDF form, please keep these things in mind:

  • Enter all gross income in the left column. The gross is the largest number—so before any kinds of deductions, such as taxes or health insurance. Don’t worry. Health insurance will be accounted for later (on the expense side of the form).
  • When listing your expenses, make sure to find them all. Go through a couple months of bank statements. Every recurring expense you dig up can potentially reduce your “disposable income” and therefore lower your payment.
  • Don’t forget to include your current wage garnishment in field #19 “Federal student loan payments”. It’s a big reason you are completing this form (so you get credit for the expense).
  • Don’t forget to refer to your pay stubs and calculate your total monthly healthcare costs. This amount will go in field #15 “Necessary Insurance”.
  • Do you have installment loans or a significant amount of credit card debt? Place this information in field #21 “Other Expenses”.
  • Page two begins with section 3. It involves your family size. Read the small print very carefully. The larger your family size the lower your payment. It’s one of the most important fields on the form. They are extremely generous when it comes counting up your allowances (you can even use unborn children). Make sure you count everyone that you are helping support — even if it’s a college buddy living on your couch.


Having trouble understanding some of the fields? These additional instructions might help.

Make the Call

Alright, it’s finally time to make the call and face your captor. Don’t worry. By this time, you are well prepared. Things should work out very well.

(Is the Department of Justice handling your case? If so, let’s hope your garnishment is administrative and not judicial.

Administrative wage garnishments (AWG) are applied without a judgement. This makes them relatively easy to put on or take off.

If your wage garnishment is judicial then the DOJ has taken you to court and won a judgment against you. Once that happens they tend to become grumpy and uncompromising. Not a good combo.

NOTE: Even if your wage garnishment is judicial, you may still be able to restore your financial aid.)


When you call, the first thing you can expect is for them to offer you a settlement. They will offer to cancel the collection fees if you will pay the principal and interest in full. If you are like most people, this is ridiculous. They are forced to make you this offer, so humor them and move on.


Now it’s time to start checking your options. See if they will lift the garnishment if you will agree to consolidate through the Direct Loan Program.

Stipulations will typically include making one or more “good faith payments” combined with agreeing to consolidate your loans within 90 days or less.

If you are not familiar with direct consolidation, loan forgiveness, and income driven repayment plans (who is?) then this can be a challenge. You will need to either start your “crash course” at or seek outside help.

(Shameless Plug Warning: It just so happens we have expertise in student loan forgiveness and specialize in fast-tracking direct consolidation loans. We do not take active wage garnishment, but make exceptions in cases such as these. Give us a call at 901-590-4870 for a no obligation consult.)


The most common way to solve wage garnishment is through a loan rehabilitation program. It takes 9 payments to complete the program, but it’s possible to have the garnishment lifted after just 5 (hallelujah).

And unless you have already done this before, it should be an option (fingers crossed). Go ahead and ask.

(Loan Rehabilitation not an option? Please skip to Requesting a Hearing.)

  • Finding your lowest payment

Now it’s time to discuss your rehab payment. The lowest possible payment is $5. Let’s see how close we can get to that number.

There are two ways to calculate loan rehabilitation payments:

  1. AGI and Exemptions from Income tax returns
  2. Current pay stubs combined with a Financial Disclosure Statement

Most people only try method 1. That’s a huge mistake. Method 2 is typically much cheaper. Have the collection company calculate it both ways. Then choose the method which is the lowest.

  • Make five payments

From here it’s just a matter of making your payments. Once you have made your 5th payment contact the collection company and request they lift the garnishment (cue angelic music). You will need the fax number for your human resources division.

(You’re welcome!)

  • Should I consolidate?

Once the wage garnishment is lifted you will probably be eligible to consolidate. The debate now will be between the benefits of consolidating verses completing the loan rehabilitation.

I am of the opinion it’s better to go ahead and consolidate because 1) it’s faster 2) it’s certain and 3) you get the opportunity to choose your new loan servicer.

Collection companies would disagree pointing to the lone benefit (as I can see it) of the removal of the “default status” from your credit report. The history of late payments remain.

(Contact us today for a no-obligation consult. We can discuss your options and help you fast-track a direct consolidation.)

  • Finish the rehabilitation

What now?

If you have decided to complete your rehabilitation then make sure to make all 9 of your payments—in full and on time (of course).

Once you are done, start watching for your new loan servicer to make contact (email, postal service, phone calls, etc). Continue to make payments until you hear from them.

NOTE: This “transition” from loan rehabilitation to new loan servicer can be tricky. Make sure to follow through, contacting the collection company again if necessary. Neglecting to do so will almost certainly result in your loans returning to default (I see it all the time).


Last (but not least) is to request a hearing. Don’t freak out. This is something that can be done in writing—if you so choose.

But first…

MY DISCLAIMER: I am not an attorney, nor is this legal advice. If you do not feel comfortable requesting a hearing on your own behalf, I would encourage you to seek legal help in all phases of the process.

There I said it.

Most wage garnishments are administrative (so not court ordered). Therefore, an administrative process is in place for those who object. This is it.

To start the process you will need to complete the “Requesting a Hearing” form. You should be able to get it from the collection company handling your case.

As you complete the form, here are some things to keep in mind:

  • You can request the hearing be conducted in one of three manners:
    1. In writing
    2. By telephone
    3. In person
  • If you request to appear in person you must pay your own expenses.
  • All three types of hearings require supporting documentation.
  • Assume (even if you don’t request it) that your hearing will be conducted in writing and without your presence. This means your documentation will “make or break” the outcome. Be very thorough. “Go the extra mile”. Find every expense and allowance and make sure to provide documentation to prove it. Load their boat with information. It can only help you.
  • Fight the urge to quit. Getting this form completed will be an exercise of will power. Just do it—even if you think you make too much money! Sources tell me that an estimated 60% of these get approved via “rubber stamp” because they run out of time. That’s the rumor.

NOTE: Remember, once the administrative wage garnishment is lifted you will probably be eligible to consolidate (which is like a second chance). If you need help fast-tracking a consolidation then please give us a call: (901) 590-4870.

Conclusion: Things to consider

  • Should I even stop the garnishment?

The rich rule over the poor, and the borrower is servant to the lender.

-Proverbs 22:7

Not gonna preach at you. But I hate debt and would be remiss not to remind you to consider the obvious. Right now you are being forced to pay off your student loan debt. At current rate, when will you be through? Would it perhaps better just to let it ride?

Just something to think about.

  • A Word on Student Loan Forgiveness.

This is a loooong post. To correctly handle the topic of student loan forgiveness the length would probably need to double (no kidding).

In lieu of that idea, let me make one single point:

If you work in Public Service, you should do everything in your power to get rid of your wage garnishment and into the Public Service Loan Forgiveness (PSLF) program. It promises tax-free forgiveness for all of your qualifying federal student loan debt.