Articles Posted in Student loans

Published on:

By

CPAacademy-logoWrapping up another busy week with student loan discharges in bankruptcy and forgiveness under the disability program.  Hosted an excellent presentation for Tampa Bay Bankruptcy Bar Association attorneys on the new procedures for small business reorganizations by Amy Denton Harris, a shareholder with Stichter, Riedel, Blain & Postler, P.A. and Guy Van Baalen, an Assistant U.S. Trustee with the Tampa U.S. Trustee’s office.

The highlight of the week was a webinar presentation I did for CPAacademy titled “Helping Your Clients Take Their Lives Back From Their Student Loans“.  I’d like to thank the 580 people who signed up even during the busy tax season with extensions expiring in just a few days.

I just have to share a few of the testimonials (all five stars except one four star who would have liked to seen a bit longer presentation!) to encourage you to watch and learn (or reach out to us to finally do something about your student loan debt):

Continue reading →
Published on:

By

I’m usually reluctant to talk much about pending bills recently introduced because so much can happen before a bill becomes a law.  Remember that cartoon with the little bill walking from place to place?  Wow, that dates me a bit.

But odds are something along these lines will get passed this year in part as COVID 19 relief:  Student Borrower Bankruptcy Relief Act of 2019 and Protecting Homeowners in Bankruptcy Act of 2020  – the bill markups are found here.

If you have private student loans, we don’t need to wait for Congress.  We frequently can discharge those private, high interest loans right now.  If you’ve filed a bankruptcy if the past, we can reopen your case (as long as the bankruptcy pre-dates the loans themselves) and wipe the deck clear of many, if not most, private student loans.

Continue reading →
Published on:

By

https://www.tampabankruptcylawyerblog.com/wp-content/uploads/sites/10/2015/07/christie_d._arkovich_p.a_1_small.jpgThis week I received an email from a borrower who believed that she didn’t have to make her private student loan payments due to COVID and the CARES Act.

Not true.  While many private lenders have indeed voluntarily agreed to forbearance of two to six months per a recent Wall Street Journal article, “For Student-Loan Borrowers, There is Some Relief – but That Isn’t the Whole Story“.  The article emphasized that these are uncertain times for all student loan borrowers, but especially those with private loans.

First, these short forbearances are coming to an end and decisions will need to be made.

Continue reading →
Published on:

By

A proposed court settlement between the Trump administration and defrauded borrowers is in jeopardy after the administration revealed its widespread denials of requests for student debt cancellation for those who attended schools who lied to them in order to get them to attend, the Washington Post reported recently.

The settlement required that borrowers who were still awaiting a decision on their Borrower Defense to Repayment (“BDTR”) application after 18 months would get 30 percent of their federal loans discharged for every month that the department is late, and those who are denied reserve the right to an appeal.  Not surprisingly, as a result, we have seen mass denials this summer.  I personally have seen around ten outright denials – no specifics, just a general denial of failure to state a claim.  I have seen two approvals – but these were only for 10% of the principal and waiver of interest during the review period.  A drop in the bucket.

This reminds me of the FTC lawsuit against DeVry.  They had them dead to rights with written misrepresentations in their marketing material regarding job placement rates.  The settlement?  Everyone got checks.  The problem was the checks were only for around $500.  For screwing up someone’s life forever.

Continue reading →
Published on:

By

https://www.tampabankruptcylawyerblog.com/wp-content/uploads/sites/10/2015/07/christie_d._arkovich_p.a_1_small.jpgThis recent 10th Circuit case, McDaniel v. Navient, has gotten a lot of press among those in the student loan arena when it paved the way for discharge of 200k of private student loans.  But what does it really mean?

First, here is what wasn’t addressed in this case.  Navient admitted that 523(a)(8) (a) (i) (government or non-profit lender/guarantor) and (b) (cost of attendance) didn’t apply.  In other words, they agreed that the loans were not guaranteed by a non-profit, and were outside the cost of attendance – so neither argument would prevent a discharge.

Instead, Navient hung its hat on the loans being covered under the “educational benefit” under (a) (ii). But Navient lost.  The McDaniel case is consistent with the 9th Circuit BAP case In re Kashikar as far as the determination that educational loans do not equate educational benefit under (A)(ii).  The 5th Circuit in In re Crocker found the same thing last fall.

Continue reading →
Published on:

By

We’re investigating this company for potential violations of the Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), among other things, and I ran across their Better Business Bureau reviews.

I’ve never seen so many 1 star reviews!  They’ve been in business for 48 years, are a major debt collector for universities and colleges for student loan debt.  Some of these reviews say they would have given a ZERO review if possible, stating they are the worst

The reviews  stem from ECSI charging a service charge for a single payment; misrepresenting the facts on credit reports and making collection calls even when an account is current, and lots more…

Continue reading →
Published on:

By

https://www.tampabankruptcylawyerblog.com/wp-content/uploads/sites/10/2015/07/christie_d._arkovich_p.a_1_small.jpgNope.  At least not at first blush, but keep reading.  Not surprisingly, a loan provided to refinance student loans does not change the character of the loan.  The Court in Juber v. Conklin (In re Conklin), No. 19-91 (W.D. N.C. Apr. 6, 2020) concluded that “[s]o long as the loan refinanced is a ‘qualified education loan,’ then the refinancing loan may still be considered nondischargeable debt under 11 U.S.C. Section 523(a)(8)(B) whether or not it would itself be independently considered an ‘educational loan.”

So what makes a student loan a ‘qualified education loan’?  Certainly not loans taken outside the true published cost of education.  Not loans to attend ineligible schools.  Nor loans made to ineligible students.  All of these are potentially grounds to discharge student loans now — private loans that is.

We successfully discharged/obtained full forgiveness for roughly $250,000 of private student loans for clients just this month.  And the month is only half way over.

Continue reading →
Contact Information
1520 W Cleveland St
Tampa, FL 33606
Phone: (813) 258-2808
Fax: (813) 258-5911
The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of an attorney / client relationship.

We are a Debt Relief Agency under the United States Bankruptcy Code. We help people file for bankruptcy relief under the Bankruptcy Code.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2015 – 2024, Arkovich Law
JUSTIA Law Firm Blog Design