If you have federal student loans, the Income Contingent Repayment (“ICR”) is the most expensive Income Driven Repayment Plan or IDR:
I just wrapped up an interview for badcredit.org for a story that they will run sometime in Nov or early December about the new rules allowing someone to discharge student loans in bankruptcy. I’ll post links here when that story is ready.
Bottom line is that there is a growing awareness that private student loans can often be discharged in a bankruptcy as a non-education loan. You’d be surprised at the results that we see! Often a full discharge, or getting the balances dropped by 50-70% and interest reduced from 10-15% to 1-2%. Very small payments spread over 20 or even more years. And the kicker is that any discharge in bankruptcy is tax free forgiveness. Who wouldn’t want to kick their private student loan to the curb…
But what about federal student loans? In the past, we simply did not file these cases – it was nearly impossible to win a discharge of federal student loans. I used to work for the other side running around the State of Florida trying these cases. I think I lost one down in Miami. One. All the rest resulted in a win for the creditor (my client at that time before I moved to the consumer side of things). But now since the new DOJ process is available, it is finally possible, if not probable. Here’s the new results – see for yourself:
Have you received a verbal forbearance of your mortgage payment? But nothing else? Mortgage servicers have certain responsibilities by law. If you have received a verbal approval of your mortgage forbearance, but haven’t received anything in writing confirming this, not to mention advising what terms are, payment restart date etc. you have recourse under various consumer laws.
Reg X 1024.41(c)(2)(iii) requires a servicer to confirm the terms of the forbearance in a written notice sent to the borrower promptly after the forbearance is granted. A servicer is also required to continue to send periodic statements while you are in forbearance at least until the effective date of any servicing transfer to another party.
If you have questions about your mortgage, and how to catch up or reduce your payments via a forbearance, loan modification or even a Chapter 13 bankruptcy, please consider reaching out to us. Also, it’s often far cheaper to address problems early if you can and you may have more options the earlier you reach out.
I saw today that WeWork filed bankruptcy and is terminating many of its leases. If you or anyone you know is in need of a new “home” we have new and professional office shares in South Tampa for attorneys or other professionals. Our space is a little different from most in that all of our offices have doors, and we understand what legal professionals need. For instance, there is someone at the office to greet clients – and we are owner occupied.
More photos and information is available on our website www.southtampaworkspaces.com. You can also email us at info@southtampaworkspaces.com.
Re: Youssef v. Navient Solutions LLC, et al., Adv. Pro. No. 17-1085, in the U.S. Bankruptcy Court for the Eastern District of New York.
CLAIM SITE: NavientStudentLoanSettlement.com
Borrowers are eligible for free money under $16 million student debt settlement – but you need to file a valid Claim Form by November 20, 2023. There is no cost to do so.
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
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…
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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.
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.
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.
Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog