The Senate passed a bill a few weeks ago, the Joint Consolidation Loan Separation Act, to unravel the Joint Spousal Consolidation Loan program which has trapped many older borrowers who were encouraged to consolidate their loans with their spouses upon graduation. While that may have sounded like a good idea…
It just occurred to me that our quarterly column, the “Student Loan Sidebar,” which appears in our local newsletter called the Cramdown which is sent to fellow bar members and our judiciary for the Middle District of Florida, Tampa Division, is something that everyone may want to see. These are…
Credit reporting is changing for medical debt. Starting July 1, 2022, previously defaulted, but subsequently repaid, medical debt will no longer be reported on someone’s credit. Next year, medical debt of less than $500 will not be reported on credit reports any longer. This doesn’t mean that the medical provider…
I just wanted to flag that as of 7/1/ 2022, PSLF Certification & Application Forms must be submitted to MOHELA. Section 7 of the form has been updated to reflect the new submission instructions if it is accessed using this link. However, if you generate the form using the PSLF…
I know the Borrower Defense to Repayment Program has undergone so many changes, and been impacted by political and practical concerns that sometimes none of us knew which way was up, however, the recent Sweet settlement gives hope! And some much needed finality. (Remember the settlement is not yet final…
Whoo Hoo! In a class action Sweet v. Cardona, the parties, including the Department of Education, have just announced a settlement of Borrower Defense to Repayment claims (“BDTR”). It’s still early, and we don’t yet know if this settlement will be approved by the Court or if some of the…
A close friend’s husband was diagnosed with a rare form of leukemia several years ago. Little did we know at the time that it was quite likely due to his early childhood spent at Camp LeJeune. I learned that his mother used to mix his baby formula with water which…
If you have significant debt but have been told that you cannot file a Chapter 13 consumer bankruptcy, now you can file bankruptcy and not risk dismissal by the U.S. Trustees office. This change occurred because the Bankruptcy Threshold Adjustment and Technical Corrections Act was signed into law yesterday. Prior…
On Friday, the Senate passed a bill that would provide relief to thousands who have been trapped in a long battle with the Department of Education after a married couple had the misfortune of consolidating their loans. While at first blush that may have seemed like a good idea, the…
This week, the parties in Sweet v. Cardona filed a motion with the court that they had reached a settlement in principle to resolve the case. As a quick refresher, this case challenged 1) the Department’s failure to issue timely adjudications on borrower defense claims and 2) the Department’s blanket denials…