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.
There are dozens of identifiable economic events that cause someone to file for the protection of a bankruptcy. Sometimes the cause is as simple as rainfall, or shall I say the lack of rainfall.
In April of 2015 the Governor of the State of California, Jerry Brown, signed an executive order imposing mandatory restrictions on water use. See full text of the order: http://gov.ca.gov/docs/4.1.15_Executive_Order.pdf. What that entailed was a State wide reduction of water consumption by at least 25%. This was due to the lack of snow pack over the winter months, and therefore, the lack of melting snow pack for water.
After representing student loan borrowers for the last few years I have come to realize that the most important aspect of obtaining some type of student loan debt resolution is getting the issue in front of someone who can communicate with you.
According to The Consumer Financial Protection Bureau, there are 8 million student loan borrowers in default.* If you are one of those, you may be asking yourself , How did I get here?
My experience with working with those clients who have student loans has shown me that student loan default could have been avoided had their servicers been forthright with the information they needed to prevent default, and options for student loan default resolution. In the majority of cases that I have seen, the services play hide and seek with vital information, leaving the student loan borrower confused.
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. Such is the most recent case of the Corinthian Colleges, Inc. owned "for profit" schools. Everest, Wyotec, and Heald College System. In California alone, it is said that over 16,000 students were sent home.
What a catastrophe!
The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance.
A tax liability is a legal claim on assets. Should an entity default on paying its taxes, the governing authority may foreclose on the delinquent account, or take out a lien or encumbrance on an asset.
SDBF was founded in 1989, and is affiliated with theCalifornia Bankruptcy Forum, together with six other local forums: Orange County, Los Angeles, Bay Area, Sacramento, Inland Empire, and Central California.
The initial principal purposes of the San Diego Bankruptcy Forum are to disseminate information, provide public service and education and promote a better spirit of cooperation in the field of bankruptcy and insolvency law and practice in San Diego County, and the officers and agents of the San Diego Bankruptcy Forum are authorized and instructed to proceed to that end.
Attorney D.J. Rausa has been elected to serve on the Board of Directors for a three year term commencing January of 2015.
Mr. Rausa has previously served on the Board of Directors for a three year term in 2006 and a two year term in 2010.
If you're still holding the bag on an income tax debt your ex-spouse drove up, and particularly if you don’t have the wherewithal to repay it, you might be in luck. It doesn’t matter if the tax bill is a result of an understatement of earnings tax on the return, or if it’s just an underpayment of the tax due at the time--you may have a chance of absolving yourself of the obligation for payment. But you’ll have to fight for it.
The IRS doesn’t care if you've got a valid divorce decree and a marital separation arrangement that declares your ex partner is responsible for all previous taxation liabilities—it simply wants to get paid. The IRS’ attitude is: fight it out with your ex, but we’re coming after you.
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.