According to recent data from Experian, 40 million Americans have at least one outstanding student loan. The average amount of debt is $29,000.00, which is an all time high. A common question for many borrowers is “how will my student loans be affected if I get married?”
Many work tirelessly over the years, but never quite make enough to pay back the large amounts they barrow for their education, and many owe even more when their loan amounts grow even higher when they go to in default.
Many file for bankruptcy, wiping out other debts. But getting rid of student loans requires initiating an entirely separate legal process, where debtors must prove that paying the debt would cause an “undue hardship.”
Have you defaulted on your Private Student Loan? Has it been in collections for a long time? Have you essentially ignored the problem hoping that it would go away? If you have been served with a state court lawsuit, now is the time for student loan resolution.
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.
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.
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:
Before the IRS takes your cash, the company must notify you. You can provide written evidence or have a hearing to show that any of the following is real:
Tax reimbursement intercepts are many typical in the instance of a defaulted student loan. Each year, for example, the federal government pockets hundreds of millions of bucks by grabbing tax refunds from hundreds of thousands of former students. (For lots more on student loan collections, including stopping or avoiding income tax refund intercepts, see Student Loan Debt.)
If the intercept is for a student loan, you can make a written request to review the agency’s file on your loan and the agency seeking the offset will consider other information, such as information showing you qualify to have your loan released because the school closed, falsely certified your eligibility, or were unsuccessful to pay refunds owed because you left before conclusion of the course.
If you are married and the intercept is for child support from an earlier relationship status, your partner can file a claim for her share of the reimbursement.
If your income tax refund is small, you will have less to lose from an intercept. You can boost the money you receive with your income during the year, so your tax reimbursement at the end of the year is maybe not that large.
student loan forgiveness | student loan attorney | student loan intercepts | irs refund intercepts | tax refund intercepts
In our experience at the Law Offices of Chris Bush, 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.
As of May 10, 2015 the National Student Loan Data System, or, 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. Debt Doc Student Loan Attorneys need 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 NSLDS link shown above. 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, Debt Doc attorneys 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, we do not.
Simply Print/save as a PDF, of all pages. This is what Debt Doc attorneys want 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. 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.”
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 DebtDoc, 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 DebtDoc, attorney Chris Bush can help.