Friday, 14 September 2018 19:42

DeVos’ Tiered Relief for Defrauded Students

The Arkansas Democrat Gazette recently reported that President Trump's administration is granting only partial loan forgiveness to most students approved for help because of fraud by for-profit colleges.

The new administration has adopted a different approach to student loan forgiveness for students defrauded by for-profit colleges. President Trump’s Education Secretary, Betsy DeVos, has rolled out a new policy of “Tiered Relief” in which defrauded students are compensated based on their earnings following completion of college programs.

California Attorney General Xavier Becerra filed a lawsuit accusing student loan processor Navient Corp. of harming consumers by failing to properly service the debts. Navient, one of the nation’s largest student loan servicers, services about $300 billion in federal and private student loans for 12 million borrowers, about 1.5 million of whom live in California.

Thursday, 03 May 2018 20:29

Chapter 13 Eligibility

Nothing can be more frustrating to a person who needs to restructure their personal finances than their inability to work with the creditors they owe. More often than not, the creditors want far more per month than they can afford. That is when seeking the advice of attorney Chris Bush becomes so necessary.

First Come, First Served

If you thought you were out of luck to qualify for the Public Service Loan Forgiveness (PSLF) program because you were enrolled in graduated or extended repayment plans — Congress recently did you a favor.

Improving consumer protections for federal and private student loans to help ease student loan debt is the aim of an amendment to the Economic Growth, Regulatory Relief and Consumer Protection Act introduced March 8 by Illinois Senator Dick Durbin. It includes a Student Loan Borrower Bill of Rights as well as some bankruptcy protections.

The National Association of Consumer Bankruptcy Attorneys (NACBA) has learned from a number of its members that the Department of Education (DOE) and its student loan servicers are kicking out bankruptcy debtors from their income-driven repayment plans. This is happening when debtors file Chapter 7 or Chapter 13 — even if they are current on their student loan repayments.

Thursday, 19 October 2017 04:10

Federal Student Loan Defaults Climb

If you have defaulted on your federal student loan — you are not alone. According to a September 2017 article in the Washington Post, “the share of people not making payments on their federal student loans within three years of leaving college has risen, reversing five years of reported declines in new defaults.”

The shift is subtle — up to 11.5 percent from 11.3 percent from 2015 to 2016 — but the raw numbers show what a significant issue this is. Of the more than 5 million people who began repaying their student loans in October 2013, 580,671 defaulted.

Last week the U.S. Department of Education announced their latest move to assist some individuals with financially debilitating student loan debt.  This part of the Obama Student Aid Bill of Rights, is directed at hundreds of thousands of borrowers who are permanently disabled and cannot work.  The Department of Education started sending out letters this week to student loan borrowers that have been identified, with the help of the Social Security Administration, as receiving disability payments and are eligible to have their student loans discharged.  This type of student loan relief is known as a “Total and Permanent Disability” loan discharge. There were 387,000 permanently disabled individuals identified, with nearly half of these currently in student loan default, as qualifying with an estimated $7.7 billion in student loans.

The U.S. Department of Education announced, on March 25, 2016, that evidence uncovered in its ongoing investigation of Corinthian Colleges, Inc. indicates that students were defrauded at 91 former Corinthian campuses nationwide and that those students have a clear path to student loan forgiveness. Students in more than 20 states who attended Corinthian's Everest or Wyo Tech schools, now represent the largest group of borrowers eligible for loan relief as a result of the Department of Education's investigation into Corinthian.

Written by

San Diego, California, Bankruptcy Litigation Lawyer with over 12 Years of Bankruptcy Experience in California

San Diego bankruptcy litigation attorney Chris Bush uses his knowledge and litigation skills in matters involving tax debts, child and spousal support enforcement actions and consumer bankruptcy. He appears on behalf of clients throughout San Diego and Imperial Counties, advocating for clients in cases involving:

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