Published on: October 25, 2023

PSLF Borrowers May Benefit by Consolidating Even Direct Loans

Consolidation before December 31, 2023 will help some borrowers maximize benefits under the Account Adjustment. After the account adjustment, the qualifying PSLF payments made on loans later consolidated will be credited to the consolidation loan based on a weighted average of the qualifying payments on the underlying loans. This will also help you to have one start/end date for PSLF forgiveness.

Those with Perkins loans or FFEL loans should definitely consider December 31, 2023 their deadline to consolidate their loans to Direct in order for prior payments to now count toward PSLF as well as future payments. Remember, you can consolidate even one loan. Think of this as a kind of refi – to a different type of loan. Stay within the federal system – this is where all the forgiveness is occuring.

Please see our video on Double Consolidation if you have Parent Plus loans — this loophole may allow you to get into SAVE for a payment that is often MUCH LESS than the Income Contingent Plan (“ICR”). https://www.youtube.com/watch?v=9KX74O4OJ8s

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Published on: October 19, 2023

On Hold with Your Student Loan Servicer?

By Christie D. Arkovich, P.A.

Have student loans that are entering repayment? On hold with your servicer? For hours? Not quite sure what’s going on?

Your servicer is your debt collector — are you certain that whatever they are going to tell you, assuming you get through, is your best option to reduce or eliminate student loan debt? Try this test: call 3-4 times, see how many different answers you get…

5.0 stars

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Published on: October 18, 2023

Don’t Just Pay Your Student Loans – Without a Plan

By Christie D. Arkovich, P.A.

Lots of misinformation out there regarding student loans. If you are receiving a bill, it’s important to speak with an expert or advocate who is on your side — discuss your options, make a plan. You might save many thousands of dollars by doing this!

There are some important deadlines also for the IDR audit/recount, and Parent Plus loans in particular. You may want to consider opting out of the IDR audit if you have a long loan history with gaps between loans — you can combine them and get more credit through a consolidation, then opt back in. But consider a double consolidation if you have Parent Plus loans. If all of this makes no sense to you, then see us, or someone like us!

Channel 13 10/17/23 Following a three-year pause, student loan payments have resumed for thousands of Americans.

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Published on: October 17, 2023

Thinking of Filing Bankruptcy — File Before Nov 1 if You Have Family Size of Three

By Christie D. Arkovich, P.A.

The new means test numbers came out:

It hasn’t changed much for Florida except – down 3k for family of 3 though. Very odd, but whatever.

New as of Nov 1: https://www.justice.gov/ust/eo/bapcpa/20231101/bci_data/median_income_table.htm.

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Published on: September 23, 2023

Reboot Your Life — How Long Must You Wait to Purchase a Home After a Bankruptcy, Short Sale or Foreclosure?

By Christie D. Arkovich, P.A.

In our efforts to help our former clients or new clients move ahead with their life, we offer tips to improve credit or benefit from new programs (with particular emphasis on those with prior financial burdens).

Today, I’d like to summarize some programs that may help to purchase a home even one day after a bankruptcy, short sale or foreclosure. We can also help you secure a knowledgeable Realtor to help in these areas.

Published on: September 14, 2023

Expansion of Covid-19 Recovery Loss Mitigation Options/Loan Mods — Qualify for a 25% reduction in P&I

By Christie D. Arkovich, P.A.

The regular FHA HAMP loss mitigation programs will remain in suspension until October 30, 2024 – next year! All foreclosure sales are to be suspended until the same date. Same with Deed in Lieu negotiations.

So what does that mean?

All borrowers who are already in default or at risk of imminent default are supposed to be evaluated under the expanded guidelines of the Covid 19 Recovery Option program. These provisions could be terminated early by Congressional action, executive or agency rules.

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Published on: September 7, 2023

Bankruptcy Discharge of Federal Student Loans DOJ Attestation Process – How is it Going?

By Christie D. Arkovich, P.A.

I ran across this statistic and wanted to share with you about the DOJ attestation process to discharge federal student loans. A great many are still pending.

From 12/5/2022 through 7/15/2023 nationwide:

409 new complaints

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Published on: September 2, 2023

Are Your Loans Part of the Homaidan Lawsuit and What Does This Mean?

By Christie D. Arkovich, P.A.

Say you have a private student loan and you have previously filed a bankruptcy. Was your private student loan discharged? I’m presuming you did not file an adversary case to obtain a specific ruling as to dischargeability of these loans.

What is Homaidan?

Loans that could have been discharged as beyond the cost of attendance, that portion that was over and above tuition, books, room and board etc. may be the subject of Homaidan. My understanding is that you can remain a class member for a discharge of any amounts that are outside of the cost of attendance and you’d remain responsible for anything else. You can also opt out and pursue relief on your own of that or the remainder of the loans, or seek alternative grounds for relief such as ineligible institution, non-dependent borrower or undue hardship.

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Published on: September 1, 2023

Prior TPD Discharges are Now Transferring to IDR Recount for Quicker Forgiveness

By Christie D. Arkovich, P.A.

For people granted TPD, who are also eligible for IDR AUDIT Forgiveness, Dept. is moving TPD people from TPD forgiveness to IDR Audit forgiveness. While there is no 3 year income monitoring on TPD anymore, there still is a three year monitoring on TPD for things such as returning to school so moving them to IDR Audit forgiveness will give these people faster forgiveness.

Forgiveness before 12/31/25 is very good! That’s when the stimulus bill expires allowing for federal tax waiver on any student loan forgiveness (private or federal). It’s also when the TPD discharge provision providing for tax free forgiveness has to be re-funded by Congress. So forgiveness now is Great News! Even if the IDR Waiver is somehow stopped due to someone filing a court case down the road, it is unlikely to unravel a forgiven loan. Rather it would most likely stop anyone in the future from obtaining forgiveness. Of course, someone who has already consolidated their loans for the IDR recount can argue that they relied upon the program’s rules when doing the consolidation, and that laches (a fancy legal term for delay) prevents the creditor from asserting that now.

This information will be processed soon.

Your Discharge Will Be Reprocessed as IDR Forgiveness

Account Number: XXXXX

Dear XXXX,

The U.S. Department of Education (the Department) discharged your Federal Family Education Loan (FFEL) Program and/or William D. Ford Federal Direct Loan (Direct Loan) Program loan(s) on the basis of your total and permanent disability (TPD) as of 05/01/2023. The Department has since reversed your TPD discharge because all of your loan(s) will instead be discharged on the basis of your income-driven repayment (IDR) forgiveness. We use the terms “you” and “your” to refer to the disabled individual who applied for discharge, XXXXX.

Because your loan(s) have been forgiven as they have accumulated time in repayment of at least 20 or 25 years, we, as your Total and Permanent Disability servicer, will transfer your loan(s) to Nelnet, who will work with you on the income-driven repayment (IDR) forgiveness. Nelnet will inform you by mail once the income-driven repayment (IDR) forgiveness is complete and which loans were included.

Please note that you will no longer remain in the TPD discharge program or be subject to the TPD three-year post-discharge monitoring period.

For additional information:

Please visit DisabilityDischarge.com or email us at DisabilityInformation@Nelnet.net. You can also contact us at 888.303.7818.

If you have questions about your income-driven repayment (IDR) forgiveness, call Nelnet at 888.486.4722 from 8 a.m. to 9 p.m. (Eastern) Monday, 8 a.m. to 8 p.m. Tuesday and Wednesday, and 8 a.m. to 6 p.m. Thursday and Friday. You may send mail to Nelnet, Attn: Claims, P.O. Box 82505, Lincoln, NE 68501-2505.

Sincerely,
Your Total and Permanent Disability Servicer

Published on: August 22, 2023

SAVE limitations?

By Christie D. Arkovich, P.A.

For those of you facing repayment of federal student loans: some people are asking whether SAVE is restricted to certain years of loans like PAYE. Nope.

SAVE is open to all Direct Loan holders, except Parent PLUS. No disbursement restrictions like PAYE. So, as long as you have Direct Loans, without any Parent PLUS loans consolidated into them, they are eligible. If the Parent Plus code is not picked up by your servicer through a double consolidation, it’s possible that SAVE may apply. But with the new Parent Plus Consolidation Indicator added to the National Student Loan Database we believe that loophole may be closing or has already closed. We have no idea if this Indicator will apply to only new consolidations or if the Department or its servicers will go back and change someone’s SAVE, PAYE, REPAYE or IBR to ICR as Congress intended.