Parent Plus Borrowers: There is a pending bill called The Parent Plus Parity Act. If this bill becomes law it will:
Great news on the IDR Recount/Audit. The student loan ombudsman Bonnie Latreille said the Department of Education are almost done processing the One-Time Account Adjustment and that should be done very soon. She also said that borrowers who have multiple consolidations might see a delay—just because it’s trickier to calculate these more complex accounts. Stay tuned.
This IDR recount is very important for many because under this program you can obtain long lost credit for periods of repayment, forbearance and deferment prior to your Direct Consolidation loans – that was formerly just gone.
Also, if you utilize Fresh Start before midnight 9/30 for any defaulted loans, you can also receive IDR credit for the Covid period – back to March 2020. That’s another 4.5 years.
NEW – If you cannot get through to Default Resolution Group or FFEL Guarantor so client can enroll in Fresh Start by midnight Eastern on 9/30, THERE IS A NEW WAY TO ENROLL BY EMAIL!
ON https://myeddebt.ed.gov/borrower/ SKIP WHITE BUTTONS, and READ LIGHT BLUE BANNER ACROSS TOP OF PAGE. CLICK ON THE SMALL click here “to submit an email requesting enrollment into the Fresh Start program, select “Other” in the Inquiry Subject Area dropdown and type “I would like to enroll into Fresh Start” in the Question/Inquiry field.”
Take a screenshot, or a phone pic of the screen when you submit. Just in case…
The SBA is sending out e-mails that seem to indicate that even though the signature block for the borrower is a corporate entity or LLC, the individual signing is also somehow liable in a personal capacity. But they also confirm that loans up to $200,000 require no personal guaranty. The language is as follows:
Personal Guaranty:
$0 – $200,000: No personal guaranty required
Call me jaded, but the Florida Uniformed Servicemembers’ Protection Act is a junk consumer law.
The Florida Uniformed Servicemembers’ Protection Act was enacted by the Republican led legislature over twenty years ago to make a lot of noise about how much the GOP loves veterans. Like most consumer statutes enacted by the Legislature since Democrats last ran the state in the 1990s, it is all about appearance and no substance. It is the paradigm of how not to write an effective consumer statute.
The only thing it added was some stupid requirement that state agencies create literature telling service members about the SCRA. And no requirement that any business actually hand them out. Quite frankly, I doubt anyone at the state even bothered to check the literature.
To use Fresh Start to get out of default, you must contact your loan holder. If your loans are held by ED, you can contact us using one of the three methods below. If your loans are held by a guaranty agency, you’ll need to call that agency. Find contact information for guaranty agencies.
If you don’t know who holds your loans, call 1-800-621-3115 (TTY 1-877-825-9923).
Section 524(c) of the Bankruptcy Code sets forth the procedures in which a discharged debt may be reaffirmed. Creditor’s solicitation to reaffirm a discharged debt which does not comply with 524(c) is a violation of the discharge injunction. In re Latanowich, 207 BR 326, (Bankr.D.Mass.1997).
Any time you are asked to repay a debt that was discharged in a bankruptcy, you should consult with an attorney to see if that is legal. Often it is not.
We represent consumers in the Tampa Bay Florida area – in most surrounding counties. Reach out to us if you have questions about your prior bankruptcy, or are considering getting rid of debt now.
Servicers (mostly Mohela at this time) are saying that borrowers should submit their recertification paperwork on time (You can upload it and/or mail it in), but it will not be processed until the injunction is lifted.
If you don’t recertify on time, you will get booted to the standard repayment plan, but you can’t recertify on time because they are not processing the paperwork! UGH!
Here is how to avoid that.
A few things I was thinking of today. First, we received notice from Nelnet of a client approval for Total and Permanent Disability. This particular client was pretty healthy, but was of advanced age of 76. I’m pretty sure no employer would be interested at age 76. He’s been retired for 13 years from a defense contractor and the military prior to that. Since he flew jets for the military, that was an easy sell for the TPD program. The fact that the program he used to work on for the defense contractor has long since gone away, plus he no longer has a security clearance and the vast majority of his skills are likely outdated, we leaned on the SSI’s verbage for advanced age.
Under the Social Security Administration’s website at ssa.gov, the Code of Federal Regulations Section 404.1563 states under (e) that they consider that for a person of advanced age (age 55 or older), age will significantly impact a person’s ability to adjust to other work.
I’d rather not compare our client to an old dog, but you know that saying that an old dog can’t learn new tricks. Well, it kind of applies here. We sent some of these regs and arguments to our doctor and obtained the physician certification shortly thereafter. Today, we received the official notice that our client’s six figure loan balance was forgiven.
Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog