How to File Bankruptcy on Federal Student Loans (The DOJ Attestation Process)

Federal student loans can be discharged in bankruptcy, and the process depends on who owns the debt. Loans held by the U.S. Department of Education use the Department of Justice’s Attestation Review, a paperwork-based evaluation that often replaces trial. Guaranty-agency and commercially held FFEL loans may follow different rules.

The Attestation Review applies only to federal student loans owned by the U.S. Department of Education. These loans become eligible for the Department of Justice’s evaluation once you file an adversary proceeding.

Other federal loans follow different rules:

• Guaranty-agency FFEL loans. Agencies such as Trellis, ECMC, and Ascendium can choose whether to use the Department of Education’s framework. Some follow it; others rely on their own review process.
  Commercially held FFEL loans. These loans qualify only if consolidated into a Direct Consolidation Loan before filing bankruptcy. Consolidating afterward creates a new loan that is not part of your case.

Eligibility depends on who owns the loan when the bankruptcy is filed.

The Attestation Form is the document the Department of Justice uses to collect the financial information it needs to evaluate federal student loan cases. You receive it after filing an adversary proceeding and confirming that your loans are owned by the U.S. Department of Education.

The form standardizes the information DOJ needs for its review. It replaces the older, case-by-case approach and ensures every federal borrower presents the same core financial details.

Once you return the Attestation Form, the Department of Justice verifies loan ownership with the U.S. Department of Education and reviews the financial information you submitted. DOJ evaluates the information under its federal review framework to decide whether to offer a stipulation for full or partial discharge.

If DOJ recommends relief, it prepares a stipulation and files it with the bankruptcy court. Courts typically approve these stipulations.

For guaranty-agency FFEL loans, the review process varies. Some agencies follow the Department of Education’s framework, while others rely on their own procedures.

Federal guidance includes several presumptions that speed up DOJ’s evaluation of Department of Education–owned loans. When a borrower fits one of these categories, DOJ may treat the case as qualifying under its review framework without further review.

Common presumptions include:

• being age 65 or older

• having a long-term disability or chronic health condition

• experiencing extended unemployment

• not completing the program the loans were for

• being in long-term repayment

These presumptions apply only to Department of Education–owned loans.

Attestation eligibility depends on loan ownership at the moment the bankruptcy is filed. Loans qualify for the review only if consolidated into a Direct Consolidation Loan before filing. Consolidation increases the principal by capitalizing unpaid interest.

Timing also affects when the review begins because the Attestation process starts only after an adversary proceeding is filed:

• Chapter 7: The adversary proceeding can be filed any time after the bankruptcy case is opened.

• Chapter 13: Many courts start the review later in the plan, often near completion.

The Department of Justice resolves most Department of Education–owned cases through one of three outcomes.

1. Full discharge

DOJ may recommend eliminating the entire federal loan balance under its federal review framework. Courts typically approve these stipulations.

2. Partial discharge

DOJ may recommend reducing the balance to an amount it considers appropriate. The court reviews and enters the stipulation.

3. No stipulation

If DOJ does not offer relief, the case continues through the normal adversary-proceeding process. Guaranty-agency FFEL loans follow their own procedures and are not bound by this framework.

The length of the Attestation Review depends on who owns your loans.

• Department of Education–owned loans: Reviews commonly finish within a few months after you return the form.

• Guaranty-agency FFEL loans: Timing varies by agency, and cases generally take longer because they may use their own review process.

• Commercially held FFEL loans: These follow the Attestation timeline only if consolidated into a Direct Consolidation Loan before filing. Otherwise, they proceed on standard litigation schedules.

The Department of Justice has released early results covering cases from November 2022 through March 2024. Among borrowers with Department of Education–owned loans:

• 1,220 cases were filed

• 96% submitted the Attestation Form

• 98% of decided cases ended in a full or partial discharge

The DOJ has not provided a breakdown between full and partial outcomes.