Major student loan changes are coming July 1, 2026. New borrowers will only have two repayment options — Standard or the new Repayment Assistance Plan (RAP). All other income-driven repayment plans (IBR, PAYE, SAVE) are being eliminated for new loans. The Grad PLUS program is also being eliminated, and Parent…
The new Income Driven Plan (“IDR”) set to roll out next summer on July 1, 2026 is called the Repayment Assistance Plan (“RAP”) for federal student loans. The administration’s goal is to eliminate the choices and complexity of the present federal student loan repayment system. The old IBR, new IBR,…
Early October has many federal student loan borrowers receiving forgiveness emails for those whose backdoor trackers show 300+ qualifying payments, and enrollment in IBR. This suggests that the Department of Education (“ED”) ran an internal audit and submitted the most straightforward cases first. We anticipate more rounds of forgiveness emails…
We have to wait for the SAVE litigation to learn if a new process allowing for Income Driven Repayment credit for all debtors in a Chapter 13 bankruptcy will go into effect. It is presently enjoined as part of the SAVE litigation. Rather than penalizing a debtor by simply placing…
Debt collection in the U.S. operates within a framework of consumer protections using the Fair Debt Collection Practices (“FDCPA”), the Fair Credit Reporting Act (“FCRA”) and the Unfair and Deceptive Trade Practices Act (“UDTPA”). There are many more federal acts protecting against unlawfully high interest rates, fraudulent mortgage practices, deceptive…
We believe that bankruptcy is becoming a major pathway to addressing student loan debt. It offers a guardrail – and a penalty for those seeking debt relief; the borrower has to file bankruptcy. Bankruptcy is outside the purview of ED requiring very little input from ED. It is simple in…
We received a signed stipulation today on one of our Attestation adversary cases for a borrower making $4k a month who received a 95% reduction on $380k+ of federal student loan debt. Now her payments are approximately $100 a month with a much more manageable loan balance of $15,600. Blarcom…
PAYE is an income driven plan which allows for a 20 year term — but it’s expected to age out in 2028 due to the transition to RAP. So if your count can get to 20 years before then, you should think about moving to PAYE (your loans would qualify…
Certification of income is coming back into focus now for repayment of federal student loans. What if you are self-employed and taking social security and don’t have a paystub? You can self certify by sending a self-certification letter for income driven plans including: Name, address, Date of birth, Social security…
So what better time to expound upon the benefits of the Student Loan Management Program (“SLMP”) here in a Florida bankruptcy. I am sure that many of you are thinking if this is so great, why hasn’t it been utilized much to date? Well, mostly it’s due to timing. The…