I’ve written quite a bit recently about the Department of Education’s recent announcements to halt the accrual of interest and collections of certain federal loans. Direct Loans and some FFEL loans are automatically being placed in forbearance until September 30, 2020. Importantly, these COVID-19 related protections do not apply to…
As an attorney, if I accept representation for two clients but I only zealously advocate for one while throwing the other to the wolves, I would be subjected to discipline by the Florida Bar and likely sued. Banks better hope when they accepted PPP applications, that they reviewed them fairly.…
False information provided by federal student loan servicers applying the CARES Act may also lead to liability in light of a recent case allowing public service employees to seek PSLF relief after being misinformed about the applicability of the law. A recent Forbes article noted our PSLF case’s potential impact. …
Despite early applications and full financial documentation (sometimes submitted within hours of portals opening), some banks, who will remain nameless for now, dropped the ball and did not timely process PPP applications on behalf of scores of small businesses who had been loyal customers for years. I am one of…
Many small businesses will take advantage of Paycheck Protection Program (PPP) and other measures to keep afloat for the next couple months. These plans hopefully will result in forgiveness of any funds used for payroll, rent and utilities. But as we all knows, running a small business involves lots of…
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…
Our firm used to do a lot of employee rights cases, but we reduced that area of practice when we elected to focus on foreclosure defense and student loan work. Recently though, we have had a few clients with questions about what happens to their income if they or an…
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…