On January 27, 2016 the Federal Trade Commission filed a lawsuit against DeVry University alleging the for-profit school deceived prospective students by exaggerating post-graduation job prospects. This constitutes a violation of the FTC Act and the complaint asks the court to provide redress to consumers and prohibit DeVry from further violations. Additionally, the U.S. Department of Education (DE) has taken separate action to require DeVry to stop deceptive advertising claims regarding its graduates’ employment success and to implement procedures to insure the truthfulness of post-graduation employment claims. These enforcement actions may open the doors for DeVry graduates to request student loan debt relief.
Marinello Schools of Beauty operates 56 cosmetology schools across five states, including two locations here in San Diego (Miramar and El Cajon). On February 4, 2016 Marinello suddenly shut down all of its locations leaving 4,300 students unable to continue their education and 800 employees out of work.
The sudden shut down came after the US Department of Education denied recertification of Marinello’s eligibility to participate in federal student aid programs. According to the Department of Education website, Marinello was notified on February 1, 2016 that its participation would end effective February 29, 2016. Three days after Marinello received this notification, it shut down all locations.
An important factor that sets student loan debt apart from all other kinds of debt is that it’s just about impossible to rid yourself of it. Even borrowers that end up in such financial burdens file for bankruptcy and struggle to get a fresh start void of their student loan debt.
But a few cases working their way through the legal system could alter that. They increase the possibility that the courts might offer a loose definition of how difficult the borrower’s financial situation is before a bankruptcy judge can justify discharging his or her loans.
It’s not just young people struggling to pay back student loan debt but more and more retirees are struggling due to this student loan debt burden. An estimated 700,000 seniors on Social Security are still paying off student loans. Recently nearly 160,000 of these retirees have had their disability and retirement payments garnished to pay down student loan debt.
Today, 71% of students graduating from 4 year colleges have student loan debt. According to The Project on Student Debt, the average student loan debt for a college graduate is $29,400. However, student loan debt is not only a problem for recent graduates.
In recent years, there has been a sharp increase in the number of older Americans who have student loan debt from financing their own education or the education of their children. As of 2013, people over the age of 65 had $18.2 billion in outstanding student loan debt.
If you have student loans and are approaching retirement, it is important to know that your social security benefits can be garnished by 15% for defaulted federal loans. In 2013, more than 155,000 social security recipients had their benefits garnished due to student loan debt, as discussed by US News & World Report.
If you have federal student loans in default, there are programs available to rehabilitate your loans, get them out of default, and into an affordable repayment plan. Our office can help you figure out the best way to tackle your student loan debt and protect your future social security benefits. Contact us to schedule a no-cost consultation to find out how we can assist you.
As college pupils start the fall semester, millions of graduates (and drop-outs) battle to spend off a hill of pupil loan debt – more than $1 trillion bucks, according to the scholar Loan Debt Clock. That's more than all the credit card debt Americans owe.
College seniors whom graduated with pupil loans in 2010 owed a typical of $25,250, in accordance to the latest information from The Project on scholar Debt. That's up five per cent from 2009.
And these days, an university degree doesn't guarantee work, let alone a good-paying task.
"You don't realize the severity of spending straight back that loan until you complete college," said Langdon Bueschel of Seattle, whom needed financial aid to go to the University of Washington.
When he graduated in 2008, Bueschel had a level in English and $12,000 in pupil loan financial obligation. He has a job creating online marketing, but most of his money goes to living expenses. Because he missed therefore numerous payments, his stability today stands at $18,000 and counting.
"we could have been more responsible and paid more quickly," he admitted, "but sometimes things come up."
The absolute most recent report from the U.S. Department of Education discovered that more than 320,000 borrowers had defaulted on their student loans as of September 2010. That is, they were 360 days or more late in making their repayments.
Can't handle your pupil loan repayments?
You may possibly have options and there's a simple method to discover them. The Student Debt Repayment Assistant on the customer Financial Protection Bureau (CFPB) website can help students – and their families – figure out the best payment options and what to-do if they're behind in their payments.
"You just respond to a few concerns and we'll be in a position to aim you to the best payment system or action you should take in purchase to best manage your debt," said CFPB pupil loan ombudsman Rohit Chopra.
First, you'll need to understand what type of loans you have – federal government, exclusive or both – because the treatments are various. Not sure? The Student Debt Repayment Assistant has a link to the National Student Loan database where you'll find away.
"We could lead you in the right direction for the income-based repayment system on federal loans and we can tell you exactly how you might negotiate with your private pupil lender," Chopra explained. "Let's say you've dropped behind like so numerous men and women have, we can even tell you about methods to negotiate with financial obligation enthusiasts and maybe even get your credit report fixed so you can get back on track."
Of program, nothing's assured. But your possibilities of modifying the payment terms are fairly good with a pupil loan from the federal government. Exclusive loan providers are generally perhaps not as ready to help. Nevertheless, it's worth a try.
"Options differ by lender, but numerous private pupil loan programs offer borrowers a partial forbearance during which the borrower makes interest-only payments for a quick duration of time until the borrower can get straight back up on his or her feet," said Mark Kantrowitz, publisher of FinAid.org and Fastweb.com. "This keeps the loan stability from growing bigger and digging the borrower into a deeper gap."
Kantrowitz tips out that some private lenders may make reductions in the loan balance or interest price as soon as the difficulty is of a more permanent nature and they know they're unlikely to recover the complete quantity owed.
Debt among pupils features reached astonishing levels in current many years. While a great deal of a young person’s debt is in the form of pupil loans, youthful adults are also plagued by car loans, mortgages and overwhelming amounts of credit card debt.
Credit card financial obligation is quickest growing among youthful grownups aged 18 to 24. From 1982 to 2011, credit card debt among this demographic more than doubled. In the same time frame, credit card financial obligation among 25- to 34-year-olds increased more than 50 percent.
And studies show that debt just increases from here. The best method to curb debt later in life is to find out debt management methods early. Debt decrease strategies like debt settlement can assist you spend down outstanding debts now so you can live debt-free later on.