Follow the debt
Student Debt Lifecycle
Start with what is happening to the obligation. Each stage points to the principal federal frameworks that may become relevant as postsecondary debt moves from formation to its end state.
A path through the debt lifecycle
Find the legal question by stage
Not every obligation passes through every stage. The lifecycle shows where different legal questions can arise as a debt is created, administered, reported, collected, transferred, resolved, or discharged.
Ten stages
Move through the lifecycle
- 01
Origination and Credit Formation
How is the obligation created, disclosed, and agreed to?
Principal federal frameworks
- Higher Education Act / Federal Student Loans
- Public Health Service Act School Based Loans
- Truth in Lending Act / Regulation Z
- Equal Credit Opportunity Act / Regulation B
- Military Lending Act / 32 CFR Part 232
- FTC Holder Rule / Preservation of Claims and Defenses
- FTC Credit Practices Rule / Consumer Credit Contract Terms
- Electronic Signatures in Global and National Commerce Act / E-SIGN
- 02
In School and Entering Repayment
What rules shape the transition from enrollment to repayment?
Principal federal frameworks
- 03
Repayment and Servicing
Who administers the obligation and processes repayment activity?
Principal federal frameworks
- 04
Borrower Communications
Which rules can affect calls, messages, notices, and other communications?
Principal federal frameworks
- 05
Delinquency and Default
What changes when payments are late or an obligation enters default?
Principal federal frameworks
- 06
Collections
Which rules govern collection activity and available remedies?
Principal federal frameworks
- 07
Credit Reporting
How may account information be furnished, reported, and disputed?
Principal federal frameworks
- 08
Forgiveness, Cancellation and Administrative Discharge
When can an obligation be reduced, canceled, forgiven, or discharged through an administrative process?
Principal federal frameworks
- 09
Financial Distress and Bankruptcy
How can financial distress and bankruptcy affect the obligation?
Principal federal frameworks
- 10
Debt End State and Federal Tax Reporting
What rules may apply when the obligation is paid, forgiven, discharged, canceled, or otherwise ends?
Principal federal frameworks