Many questions surround the possibility and even probability of discharging student loans in bankruptcy. The law around student loan dischargeability hasn’t changed in many years, the way I understand it – it’s just that newer theories on applying that law to private student loans have come to the forefront in…
We’ve received some repeat questions lately by parents whose children are still in college. Basically, they are worried that there isn’t enough time to get a double consolidation done to get into SAVE. Here’s the rules: The loan does have to be fully disbursed. You don’t have to wait for…
A little birdie told me that Sunday’s show will be about student loans. I just watched the one last week on Boeing and it was really good! Made me pretty happy not to own Boeing stock… Here is the Boeing story https://www.youtube.com/watch?v=Q8oCilY4szc You can watch/stream Last Week Tonight with John…
For those of you who are on the receiving end of credit dings due to federal agencies messing up your student loans, the recent Kirtz decision allows a consumer to sue a federal agency under 15 U.S.C. Sections 1681n and 1681o for defying the terms of the Fair Credit Reporting…
Remember, any private or federal student loan debt that is forgiven before December 31, 2025 is not subject to federal tax. Due to the American Rescue Plan Act of 2021 loans that are forgiven are not considered taxable income for federal income tax purposes. Since state and local tax implications…
Finally! Relief for Joint Spousal Consolidation Federal Student Loans Did you know that married couples were allowed to consolidate their debt under a program that existed from 1993 to 2006 which allowed a single monthly payment and often a lower interest rate. But it meant that each spouse was 100%…
Good news: the Administration announced last week that in February, it will begin early implementing the SAVE provisions that provide cancellation of borrowers’ remaining balance in as few as 10 years of qualifying payments depending on the total amount originally borrowed. Borrowers enrolled in SAVE will have their remaining balance…
Lots of confusion out there regarding the three year monitoring. The wage monitoring part of the three year monitoring went away, but NOT the three year monitoring as a whole. What does that mean? Well, if the borrower returns to school and takes out federal loans, that could reinstate the…
Despite lots of changes in the landscape allowing the discharge of both federal and private student loan debt under the right circumstances, many people still believe that student debt survives a bankruptcy. Private loans follow very different rules then federal as you probably know. One thing I haven’t written much…
Most people I speak with about the disability discharge of federal student loans are concerned that the test is similar to the Social Security Disability analysis. It’s not. You don’t have to deal with a scale of whether you can feed or dress yourself. You don’t have to be approved…