You’ve probably heard by now that the CARES Act provides for a suspension of payments and collections, and waiver of interest for six months. However, not all loans are covered. Importantly, 20% of federal student loan borrowers are not covered by the CARES Act. Covered loans do not include FFEL…
We were interviewed by the Penny Hoarder this week in their story “How You Could Get a Temporary Break from Student Loans Due to COVID-19.” You should also check out our recent blog post “Watch Out for These Pitfalls that may come with Suspended Federal Student Loan Interest.” Under the…
The CARE Act passed over the weekend extends the 60 day forbearance, interest waiver for all Direct Loans, and collection activities for 6 months. Until the Department of Education can update its rules to be CARE compliant, here is a summary of what to expect: Coronavirus and Forbearance Info for…
How do you determine if the COVID-19 federal law waiving interest applies to your federal student loans? The most recent changes are summarized here in a nice Q&A format: https://studentaid.gov/announcements-events/coronavirus. My take on all this: The Act suspends student loan payments and interest accrual through September 30. For those in…
We’ve gathered some information below for folks with student related questions if their job/business/income has been impacted by the CoronaVirus/COVID-19: Here some info below on servicers and US Dept of ED current updates: Nelnet; currently open “attempting to keep call centers staffed, however use online options” Offers: Deferment, forbearance Great…
Lawyers often spend too much time focused on whether a debtor meets the Brunner test for undue hardship that they miss major opportunities to reduce and eliminate federal and private student loan debt. Many people are in forbearance for years while their loan balances continue to grow. Taking advantage of…
Courts are divided on this issue. The answer may matter as to whether a debtor in bankruptcy must pass the means test. The federal Bankruptcy Code defines consumer debt as debt incurred by an individual “primarily for a personal, family, or household purpose.” … The court may classify student loans as either consumer debt or non-consumer debt. Some courts, like…
Our record now for obtaining forgiveness of federal student loans for one client is over a million dollars. So there is no cap — and this took less than three months. Client consulted with us on 11/11/19 and the Total and Permanent Disability forgiveness of over one million dollars was…
President Trump’s proposal to eliminate public service is not nearly as bad as the headlines make it appear. Basically, 99.5% of folks are being denied for PSLF right now because they do not know how to qualify. Their federal student loan servicers are doing a poor job of communicating to…
See below for tips to end roadblocks faced by our older population when dealing with student loans! In a Yahoo Finance article this week, several problems were outlined and addressed during Secretary DeVos’ testimony on Capitol Hill. First, lengthy delays in the Borrower Defense to Repayment program for those who…