Published on:

By

Christie_1So 7.7 million borrowers are in a SAVE forbearance.  That means no payment, no interest since the courts applied the SAVE injunction last July (2024).

Lots of questions about what borrowers should do now.  We just did an interview with ABC Action News this a.m. that will run tonight.  Here’s the link to that story.

If you can’t afford to make any payment now, then stay on the SAVE forbearance as long as you can.  Servicers are beginning to shift people off SAVE forbearance but it may be another month or two before they can get to you.  It’s incredibly unlikely that someone can just stay on a SAVE forbearance long term.  SAVE has ended.  No doubt about that.

Continue reading →
Published on:

By

arkovich_law-narrowIf you are encountering collections calls or even a collection lawsuit, sometimes taking the offense is the better route.  For instance, we are seeing usury violations where the rate of interest being charged on its face is 90% APR.  The lawsuit may be filed by a smaller player who you’ve never heard of, who we call debt buyers.

In Florida, the maximum simple interest rate is 18% per year for loans less than $500k, for loans larger than that, the maximum is 25%.  Violations can be severe, and can include all interest voided, and the lender can even face criminal charges.  This may be an important negotiating point, and something that you should carefully raise to avoid making an inadvertent extortion violation yourself.

You may see an interest rate way higher than 18% for credit cards and payday lenders.  Why is that?  Well, they have unique rules is one answer.  Rates can fluctuate based upon default rates, the company’s operating expenses, credit score and card type.  They also can choose to follow another state’s laws which may allow for higher rates.

Continue reading →
Published on:

By

arkovich_law-narrowBuy now, pay later options are on the rise.  The most popular players in this space – Klarna, Afterpay, Affirm, and Zip – are everywhere. They’re not just options. They’re default features, embedded into the checkout flow of almost every major retailer.  Even Door Dash now has options which allow you to pay for your burrito later.

Most offer 0% interest and when used responsibly, they can help as a cash flow tool to carry someone until their next paycheck for instance.

It’s easy access, no real credit checks, frictionless credit with a few mouse clicks or phone taps.

Continue reading →
Published on:

By

Christie_1Those with federal student loans have had a five year reprieve for collections on federal student debt.  We are seeing more delinquencies as people do not not realize they were due to make a payment and for those borrowers who cannot afford to make a payment now.

There may be relief (talk to us about your specific circumstances) but settlement is likely not an option for most.  The Department of Education has very strict limits on settlement of federal student loans:

  1. 100% of current principal and interest (better credit reporting)
Continue reading →
Published on:

By

Christie_1The IDR payment tracker was removed from many if not all borrower’s studentaid.gov sites today.

You can still find your payment count however.  Write your servicer directly for it or use this direct  link after you’ve logged onto StudentAid.gov:  https://studentaid.gov/app/api/nslds/payment-counter/summary​.

This link shows in a computer code format called JSON which you can’t read.  But if you copy it into an AI tool such as ChatGPT, Claude or any of the others, it can be translated into regular English.

Continue reading →
Published on:

By

We are hearing from multiple sources that federal student loan borrowers IDR progress will be removed from the government site next week.  It’s imperative that you screenshot your IDR progress in case you need it down the road.  This is on studentaid.gov and looks like this:

student-aid-IDR-count

Go ahead and view your IDR progress and screenshot every screen with info.  Don’t wait – do it now please!

Screenshot Your IDR Progress Today

Published on:

By

Christie_1We’re hearing a lot of people are finding out their student loans are delinquent – another today that received a 90 day late and had no idea they were out of deferment.

The dings to your credit are not small — we had a client recently who had four student loan accounts (not unusual at all) and the hit to his credit was 200 points.

You can imagine what a 200 point hit will do especially when it’s unexpected!

Continue reading →
Published on:

By

Christie_1The IDR online application is back up, though a demo revealed there are some big new restrictions on enrollments:

  • No enrollment in SAVE
  • No opportunity to request enrollment in the plan with the lowest monthly payment
Continue reading →
Published on:

By

arkovich_law-narrowCredit reports and credit scores are used widely in this country.  Practically every financial activity somehow involves your credit score.  If it’s wrong or lower than it should be, you can be charged additional fees and/or thousands more in interest.

Right now, there are considerable disruptions in the financial world.  We are seeing drastic changes involving student loans as you likely know.  Duplication of accounts, erroneous reports of missed or late payments are frequent and can be very damaging.

Just yesterday, we heard from a potential client who had been making his payments on time, but due to an addressing error, his loan servicer had changed and he did not receive notice of the change.  So his payments have been going to the old servicer.  Meantime, the new servicer has dinged his credit for 90 days for missed payments.  You can bet something like that can cause a score to decline precipitously.  People are regularly denied a mortgage, car, apartment, or new credit for this.  At the very least, existing costs will likely go up as other creditors perceive a risky borrower.

Continue reading →
Published on:

By

Christie_1While the Income Driven Payment application process is shut down  (paper applications were being processed, but now they too are reportedly on hold), to be first in line when it restarts, we suggest a paper application be sent to your loan servicer so it’s in the queue, and be sure to use the latest IDR application form.  (Form #1845-0102 with an expiration date of 4/30/2027).  Attached documentation of your income (latest tax return filed or a recent pay stub).  You can try to upload it to your servicer, but with most of the online systems halted, it may be best to send via paper certified mail with a return receipt.

An Income Driven Payment is one way a borrower can remain current on their federal student loans who cannot afford their normal Standard payment.  Please don’t ignore a student loan bill – it not only will incur late fees, but you will also have damage to your credit and the possibility of default which is not good for a federal student loan.  Please read back through our blogs for some of the reasons why.

You may have some forbearance left.  A couple days ago I blogged about forbearance options.  This will not accrue credit toward forgiveness but it will keep your credit in good standing and avoid default.

Continue reading →
Contact Information
1520 W Cleveland St
Tampa, FL 33606
Phone: (813) 258-2808
Fax: (813) 258-5911
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney / client relationship.

We are a Debt Relief Agency under the United States Bankruptcy Code. We help people file for bankruptcy relief under the Bankruptcy Code.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2015 – 2025, Arkovich Law
JUSTIA Law Firm Blog Design