With over 21 years of experience as a consumer bankruptcy attorney, D.J. Rausa stays on the cutting edge of Bankruptcy and Student Loan Law which enables him to provide vital information to his clients.
In a few instinces, an agency can ask the IRS to intercept (take) your tax reimbursement and use the cash to your financial obligation.
Tax refund intercepts are allowed in these situations:
In our experience at the Law Offices of D.J. Rausa, there is one part of our everyday workforce that is so underpaid, it defies all logic. School Teachers!
As we experience a shifting economy, the salaries of teachers continue to decline, while the cost of higher education and teaching credentials skyrockets. That means we see school teachers, from K-1 through high school, suffer the enormous pressure of dealing with their student loan debt.
Attorney D.J. Rausa represents teachers in their management of their private and Federal student loan debt. After a full analysis of their complete financial picture, we will be able to custom craft a financial plan. This plan includes taking advantage of the Federal Teacher Loan Forgiveness Program offered to qualified teachers by the U.S. Department of Education.
Every teacher’s circumstances are different and if qualified, teachers can take advantage of The Teacher Loan Forgiveness Program as well as other Federal Programs that are out there. These programs can be combined to take full advantage of ALL the Federal Programs.
With this in mind, please read the detailed article that follows this introduction and call to make an appointment to obtain a free consultation with attorney D.J. Rausa for a full review and explanation of options.
The Teacher Loan Forgiveness Program is intended to encourage people to continue and enter in the teaching profession. Under this program, if you train full-time for five complete and consecutive academic years in certain primary and secondary schools and higher education institutions that serve low-income people, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans. If you have PLUS loans only, you are not eligible for this type of forgiveness.
If you are in default on subsidized or unsubsidized loans, you are may not eligible for forgiveness of that loan unless you have actually made satisfactory repayment arrangements using the holder of the defaulted loan.
The loan(s) for which you are searching for forgiveness must have been made before the end of your five academic years of qualified teaching service.
Any time you spent teaching to get benefits through AmeriCorps cannot be counted toward your needed five years of teaching for Teacher Loan Forgiveness.
You must have been used as a full-time instructor for five consecutive and total educational years, and at least one of those years must have been after the 1997–98 educational year.
You must have been employed in secondary or primary school that is in a college district that qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965, as amended; has been selected by the U.S. Department of Education based on an assumption that more than 30 per cent of the school’s total enrollment is made up of children who qualify for solutions supplied under Title I; and is listed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits. If this directory is not available before May 1 of any year, the previous year’s directory may be used.
Note: All second and elementary schools operated by the Bureau of Indian Education (BIE)—or operated on Indian reservations by Indian tribal groups under contract with BIE—qualify as schools serving low-income students. These schools are qualifying schools for purposes of the loan forgiveness program, even if they are not detailed in the Annual Directory of Designated Low-Income Schools for Teacher Cancellation Advantages.
You may qualify if the consecutive five-year period includes qualifying service performed after the 2007–08 academic year at a qualified academic service agency.
If your school meets the above requirements for at least one year of your teaching service, but does not meet these requirements during subsequent years, your subsequent years of teaching at the school may be counted toward the required five full and consecutive educational years of teaching.
A teacher is an individual who provides direct classroom training, or class-type teaching in a nonclassroom setting. Special Education teachers are considered teachers.
You must teach full-time for five consecutive and total academic years.
Service Completed Before Oct. 30, 2004
If your five consecutive and total years of teaching began before Oct. 30, 2004, be sure to note the following:
Service Starting on or After Oct. 30, 2004
If your five consecutive and full years of teaching service started on or after Oct. 30, 2004, be sure to note the following:
Unable to Finish an Academic Year
If you had been unable to finish a scholastic year of training, that year may still be counted toward the required five consecutive and total academic years if
Have always been I an extremely qualified instructor?
To be a highly qualified instructor, a public elementary or secondary school teacher must
In addition to the above—
An elementary college instructor who is brand new to the profession is considered highly competent if he or she also
Each year, the U.S. Department of Education publishes a list of low-income elementary and secondary schools. To find out if a college is categorized as a low-income school, check our online database for the year(s) you've got been employed as an instructor. Concerns about the inclusion or omission of a particular college must be directed to thestate education company contact in the state where the school is located and maybe not to the U.S. Department of Education.
If you teach at an educational solution agency, your training service may qualify if the consecutive five-year period includes qualifying solution at an eligible education service agency performed after the 2007–08 academic year.
If you have a loan from the Federal Perkins Loan system you might be eligible for loan termination for full-time teaching at a low-income college, or for teaching in certain subject areas. You can also qualify for deferment for these qualifying training solutions. Check with the school that made your Federal Perkins Loan for more information.
You qualify for termination (release) of up to 100% of a Federal Perkins Loan if you have taught full-time in a general public or nonprofit primary or secondary school system as a
Who is considered a teacher?
A teacher is somebody who provides people direct classroom teaching, or classroom-type teaching in a nonclassroom setting, or educational solutions directly associated to classroom teaching (for instance, college librarian or guidance counselor).
You don't need to be certified or certified to receive cancellation benefits. Nevertheless, your employing college must consider you to be a full-time professional for the purposes of salary, tenure, your retirement benefits, etc. If you are researcher, supervisor, administrator, or curriculum specialist, you are not considered a teacher unless you primarily provide personal and direct academic services to pupils.
Just how long must I teach?
You must teach full-time for a full scholastic year or its equivalent. There isn't any requirement that you must teach a given quantity of hours a time to qualify as a full-time instructor; the employing school is responsible for making that choice.
An “academic year or its equivalent” for cancellation purposes is defined as one full college year or two half-years that are from different college years. The two half-years must be consecutive and full, excluding summer sessions, and must generally fall within a 12-month duration.
Training Part-time at Several Schools
You can have your loan canceled if you're simultaneously teaching part-time in two or more schools if an official at one of the schools where you taught certifies which you taught full-time for a full academic year.
Teaching at a Private School
Your loan can be canceled for services performed in a private college if the private college has established its nonprofit status with the Internal Revenue Service (IRS), and if the school is providing elementary and/or secondary education according to state law.
Training at a Preschool or Prekindergarten Program
Your loan can be canceled just if the state considers such a system to be a part of its primary training system. A low-income-school-directory designation that includes prekindergarten or kindergarten does not suffice for a state determination of program eligibility.
Teaching at Low-income Schools
A cancellation based on training in a school serving individuals from low-income families will be granted just if you taught in an eligible college as determined by the state training institution.
Every 12 months, the U.S. Department of Education publishes a list of low-income elementary and secondary schools. To find out if a college is categorized as a low-income school, check our online database for the year(s) you have been used as a teacher. Questions about the inclusion or omission of a specific college must be directed to the state teaching institution contact in the state where the school is found and maybe not to the U.S. Department of Education.
All secondary and primary schools operated by the Bureau of Indian Education (BIE)—or operated on Indian reservations by Indian tribal groups under contract with BIE—qualify as schools serving low-income students.
NOTE: If you've got had a portion of your loan canceled for teaching at a low-income primary or second college in one single year, you can continue to have portions of your loan canceled for teaching at that college also if it's perhaps not listed as a low-income school in later years. Under certain circumstances, the organization that holds your Perkins Loan may permit retroactive termination if you can demonstrate that you qualified for termination in a previous 12 months. Nevertheless, the organization may perhaps not refund repayments made during such a retroactive period.
Teaching at an Educational Service Agency
If you teach at an academic service agency, your teaching service may qualify for cancellation if the period includes qualifying service that includes August 14, 2008, or starts on or after that date.
Teaching Special Education
You must have an official at the public or other nonprofit primary or secondary school certify that you are a full-time special education teacher of infants, toddlers, kids, or childhood with disabilities either on the Federal Perkins Loan deferment/cancellation kind or on an official letter from the school bearing the school's seal or letterhead.
If you offer one of the following services, you qualify as a teacher only if you are certified, certified, or registered by the proper state education agency for that location in which you are offering related unique educational services, and the services you provide are part of the academic curriculum for handicapped kids.
The services are
Teaching in a Designated Subject Shortage Area
This cancellation is based on full-time teaching if there is a shortage of teachers in your subject area. Each year the state teaching agency determines any subject shortage areas in the primary and secondary schools within the state. Check with your local school system or state education agency to discover if your subject area is designated. If you train full-time in mathematics, science, international language, or bilingual education, you qualify for cancellation also if the state has not designated one of these subject areas as a shortage area. For a borrower to be considered as teaching in a field of expertise, the majority of classes taught must be in that field of expertise.
How do I apply teacher cancellation?
You must request the proper forms from the office that administers the Federal Perkins Loan program at the school that holds your loan. You must also supply any documentation the school demands to show that you qualify for cancellation of your Perkins Loan. It is the school’s responsibility to figure out whether you qualify, and the school’s choice cannot be appealed to the U.S. Department of Education. Schools may not cancel any section of a loan for teaching services you performed either before the date the loan was disbursed or during the enrollment duration covered by the loan.
How much can be canceled?
If you are eligible for cancellation under any of the categories listed above, up to 100 percent of the loan may be canceled for teaching service, in the following increments:
Each quantity canceled per year includes the interest that accrued during the year.
As of May 10, 2015 the NSLDS report access system was changed. You will need to Log onto NSLDS.ED.Gov by using your User Name or Verified E-mail address and a Password.
1. If you have already set up your access with your User Name or Verified E and Password, simply log on and follow the instructions below.
2. If you have not set up your access, then click on the “Create an FSA ID” tab and follow all the steps to create your FSA ID.
a You will get an e-mail asking you to verify your e-mail address
b You will hear back from FSA once they verify your information with the Social Security Office. This should take a day or two.
c Once everything is verified, follow the directions below.
The starting point to begin an analysis of any Student Loan issue is to obtain any and all information that the U.S. Department of Education has regarding all Federal Student loans that pertain to you. Attorney D.J. Rausa needs this information to be able to explain any and all options.
If you have obtained a Federal Student Loan anytime during your life, then the information is available at the National Student Loan Data System, or, NSLDS. This report will provide vital information regarding what type of Federal Loans you have obtained, the status of those loans, who the current servicer of those loans are, and who the lenders are.
From this website, Attorney D.J. Rausa will need two things.
1) The summary of all your loans will be the first page you see.
2) The detail report on all your loans.
The number of each loan will be listed on the left hand side of the summary page. The numbers are hyperlinks to all the details of each of your loans. Simply click on the number and the details of the loan will be the next screen. I will need all pages for each of these individual loans.
In the center of each page, there will be a Download button. DO NOT DOWNLOAD unless you want 75 pages of information in a txt format, I do not.
Simply Print/save as a PDF, of all pages. This is what D.J. Rausa wants to review and it will be used to discuss and evaluate your circumstances.
I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.
San Diego, CA, January 28, 2015 – Representative John K. Delaney (MD-6) has filed legislation in Congress spotlighting the omnipresent financial crisis with student loan debt. Unlike mortgage, credit card and auto loan debt, the current law does not allow for student loan debt to be discharged. The Discharge Student Loans in Bankruptcy Act (H.R. 449) would most likely render student loans dischargeable under bankruptcy.
“Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions,” Congressman Delaney said in a recent statement. “While student loan debt is a complex problem that will require many solutions—increased support for grant programs, efforts to increase affordability, improved consumer education—we also need to reform our laws to help those with the absolute greatest need. Right now, there is effectively a huge student loan loophole in bankruptcy law that’s hurting real people."
As the cost of college tuition continues to rise, the student loan debt burden on students and their families also continues to rise. San Diego bankruptcy lawyer D.J. Rausa said, “Student loan debt affects not only recent graduates but also every age generation, even senior citizens. This legislation would truly help people struggling with this issue.”
"Bankruptcy has long been an option of last resort for individuals facing an irresolvable level of debt; bankruptcy isn’t easy or enjoyable, but it’s a necessary part of our financial system," Delaney continued. "It doesn’t make sense for students with heavy debt burdens to be worse than someone with credit card, auto loan debt or mortgage debt. Every member of Congress from every state in the country has constituents who are struggling severely because of student loan debt. At the very least we should have some basic fairness in the law.”
About D.J. Rausa, Attorney at Law
San Diego Bankruptcy Attorney D.J. Rausa has over 21 years experience as a consumer bankruptcy lawyer and advocate. Throughout his career, he has helped thousands of consumers with the Student Loan Debt,delinquent tax debts, child and spousal support enforcement actions. As a consumer bankruptcy attorney, he specializes in both Chapter 7 Bankruptcy and Chapter 13 bankruptcy. He is also skilled in the areas of debt negotiations and reorganization, foreclosure defense, income tax resolution with the IRS and California State taxing authorities. Attorney Rausa is an aggressive advocate for individuals and families consumed by debt after often caused by catastrophic medical bills, job loss, and the hardships of student loan debt.
The Law Offices of D.J. Rausa
1081 Camino Del Rio South #207
San Diego, CA 92108
The U.S. Department of Education has a program that is available to those who have Federal Student Loans, but cannot pay them due to their total and permanent disability. This process is very detailed and there are very strict documentation requirements.
If you have been deemed totally disabled by the Social Security Administration and are receiving Social Security Disability benefits, then you are eligible to have your Federal Student Loans administratively discharged. In other words, you will be release of the obligation to pay these loans. Just recently, here at the Law Offices of D.J. Rausa, we were successful in obtaining a Total and Permanent Disability Discharge of $80,000.00 in Federal Student Loans.
Additionally, if you are a military veteran, and have been determined to be disabled by the Veterans Administration, your Federal Student Loans can be discharged under the Total and Permanent Disability Discharge process. We assist disabled military veterans with this process in order that they may recover and move forward without having the financial burden of any Federal Student Loans.
Many disabled people who have Federal Student Loans can be eligible for a Total and Permanent Disability Discharge of their loans if their doctor has made such a determination. Again, this process is very technical. Here at the Law Offices of D.J. Rausa, we can help.
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 Veteran of the United States Navy, I thought it appropriate to address the Discharge of Federal Student Loans if a Military Veteran is disabled because of a service related injury.
As we all know, in today’s economy student loans seem to haunt every generation. The most recent graduate, who finds their student loans are not due for the first time, recognizes this. The student loan borrower who has exhausted their very last deferment is feeling the pinch. Even those who are drawing Social Security or other Federal Benefit, may realize the catastrophic economic impact of the offsetting of their benefits.
However, nothing is more injurious to our Disabled American Veterans who find themselves lost and confused because they have U.S. Veterans Benefits that are insufficient in addressing their living expenses and their Federal Student Loans.
The U.S. Department of Education has a Student Loan Discharge program for Disabled Veterans. If a Veteran is unemployable due to a service connected disability, as determined by the U.S. Department of Veterans Affairs, then the Veteran may be able to Discharge his or her obligation to repay their Federal Student Loans, without regard to balance owed or status of collections.
Additionally, there are two other extra benefits for the Disabled Veteran who qualifies. The first being that any and all amounts paid to the Federal Student Loans, are refunded to the Veteran and retroactively applied to the date of Disability Determination. The second, there is no requirement for any monitoring of the Disability. Both are extremely beneficial to the Disabled Veteran.
Call to Action:
If you find yourself unable to address your student loans, and are drawing benefits under Social Security, Social Security Disability, State Disability, or any Disability Rating by the Veterans Administration, please contact my office for an evaluation of your financial situation.
These programs are available to Veterans and Retired Persons.
Student loan debt cripples many student loan borrowers, including recent graduates. Many leave college with thousands of dollars in student loans. Even with a steady job, it can be difficult to meet student loan repayment obligations. Others struggle for years in an attempt to manage the student loan debt.
Attorney D.J. Rausa is committed to helping clients develop a payment plan they can manage. He can also determine if a student loan might cause the debtor "undue hardship." This can be used as an exception to the student loan repayment requirements.
In San Diego, attorney D.J. Rausa helps clients obtain relief from student loan debt. He has more than 20 years of experience. He is committed to making sure everyone has a chance to obtain student loan debt relief. Contact us for help addressing your student loan concerns.
Students may have received federal student loans or loans from private companies – many students use a combination of both to get through school.
Many students have also turned to parents, grandparents or others to either take out the loan or co-sign for it. Either way, this makes the parent a student loan borrower.
Because so many students have gotten in over their heads with excessive student loan debt, the federal government has developed a whole host of options available to address Federal Student Loans. These types of loans are subject to programs offered by the U.S. Department of Education.
To find out what Federal Student Loans you have, go to the National Student Loan Data System, www.nslds.ed.gov, to get your report. This report contains vital information in evaluating what the next step will be to address your Federal Student Loans. If a student loan is not on this report, chances are the loan is a private student loan.
Once this information is reviewed, Attorney D.J. Rausa will be able to determine what the best options are.
Private Student Loans are NOT subject to any Federal Student Loan Program. Therefore, they have to be addressed in a completely different manner.
Options for Private Student Loans are very limited, however Attorney D.J. Rausa may be able to negotiate favorable terms of repayment. The factors widely vary from lender, servicer, and collection agency. Therefore the results also vary.
If favorable terms cannot be reached, then a Chapter 13 Bankruptcy is an option that can be exercised to force the Private Student Loan lenders to accept an affordable payment.
There is a common misperception that once you take out a student loan, you are obligated to pay it all back no matter what. This is not entirely true. While some student loan debt may not be discharged through bankruptcy, The Law Offices of D.J. Rausa may have ideas to help you reduce or discharge your debt.
However, it is important to note that the process of discharging student loan debt differs from the process of discharging other types of debt and will require a detailed analysis of the type of student loan as well as the history of the loans.
Student loan debts are not automatically discharged through Chapter 7 bankruptcy. The Chapter 13 bankruptcy process can be used to restructure your student loans into a more manageable monthly payment. Attorney Rausa offers comprehensive Chapter 13 bankruptcy solutions to help you set up a payment plan to pay down your debt, including your student loans.
Chapter 13 repayment plan can last for as long as five years. Attorney Rausa will develop a feasible plan for you in order that some percentage of all your debt is paid. During the pendency of your case, you will be protected from any and all collection activity; this includes the IRS and any student loan collection agencies or servicers.
Sometimes student loans can be forgiven when the borrower is shown to have endured “undue hardship,” such as:
Attorney Rausa is prepared to address all of your questions regarding undue hardship.
Find out more about these related topics:
Contact us by e-mail or call toll free at (619) 295-3322 to see if you qualify for the hardship exception, or if reorganizing your payment plan is a better option. A free initial consultation is available with an experienced San Diego student loan debt relief lawyer.
Free Initial Consultation * Available Evening and Weekend Appointments
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
When does a student have to start payment on Perkins Student Loans?
If someone is attending university at least half-time, they have nine months after they graduate, leave school altogether, or drop below half-time status before they are required to start repayment. If you attend less than half-time during the semester, check with your college to learn about how long your grace period will be before you make payment on perkins student loans.
Contact us to learn more about Perkins Student Loans!
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