Articles Posted in Student loans

Elon bought $1.5 billion of Bitcoin.  I own Bitcoin.  This makes me happy.

What else makes me happy is a private student loan settlement offer we received on one of our adversary cases this morning.  Our client will only have to pay back $22,000 rather than the whopping $300,000 she currently owes.  That’s 7% by the way.  Whooo hoo!  Very reasonable and very affordable payments as well.  We understand the student debt crisis out there and are doing our part in helping our clients with student loans to deal — and to get out of debt!!

While I acknowledge everyone should repay their debt, the problem with much of the student loan debt out there is the lack of benefit received, and in many cases the predatory nature of the schools and many of these loans.  This settlement was for a private debt — not government.  If she had had federal student loans, there would have been income driven debt forgiveness programs to at least address the lack of income her education has provided.  Return on investment – that’s the true test of what a college student should borrow.  If no return, then bet on Bitcoin.  You’d be better off.

Don’t let this happen to you or one of your loved ones!  Take action now!  Tell your loved ones and friends to take action now.  Don’t wait for Congress.  With the $2,000 stimulus that is now likely, it appears that President Elect Biden may have to push any meaningful student loan relief further down the road.  Also what will that relief mean:  10k reduction is my best guess – after Congress approval.  Why not reach out to us and go for the the whole tamale.  10k is usually nothing for most of our clients.

This is a review we received today from a very happy client in Tampa Florida after we got rid of ALL of his federal student loans:

Thank you so much, you have no idea how appreciated you are for your all of your time work, and effort {to eliminate 100% of my student loan debt tax free}.

Are you receiving notices from any of these five companies?  If not yet, you likely will in the next few months.

• EdFinancial Services
• F.H. Cann & Associates

The question as to whether the private student loans were incurred “solely to pay qualified education expenses” under 26 U.S.C. Section 221(d)(1) is where these cases are won or lost.

In Conti v. Arrowood Indemnity Co., No. 20-1172 (6th Cir. 12/14/20), the Court affirmed a bankruptcy court’s judgment against the borrower, and refused to consider arguments that were not raised at the trial court level.

Why is Conti decision important?  Two reasons.  First, it put a lot of emphasis on the purpose of the loans – as opposed to their actual use.  Court vary on this approach and it may depend upon where you live as to what approach is used by your courts.  Second, the Sixth Circuit emphasized the need to fully flesh out all available legal arguments and facts at the trial court level.