The payday lending industry is massive and profitable in states where it is legal. Americans borrowed nearly $29 billion from payday lenders in 2017 and paid a whopping $5 billion in fees. It’s no surprise that the payday industry has vigorously fought to fend off regulation and reform devised under the Obama administration.
The student loan debt crisis in the United States has been steadily worsening over the past 10 years. This month the total outstanding student debt reach a staggering high of $1.465 trillion! Data from the New York Federal Reserve indicates that the unrelenting climb in student loan debt shows no signs of slowing.
There can be nothing worse for a student than to have the whole school close down from underneath you, leaving you lost, dazed and confused. Now, it looks like 20,000 students of Brightwood College are locked out of school! Bankruptcy and Student Loan Lawyers like Chris Bush can help you understand your debt relief options and find a solution that best fits your financial situation.
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.
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.
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.