An important factor that sets student loan debt apart from all other kinds of debt is that it’s just about impossible to rid yourself of it. Even borrowers that end up in such financial burdens file for bankruptcy and struggle to get a fresh start void of their student loan debt.
But a few cases working their way through the legal system could alter that. They increase the possibility that the courts might offer a loose definition of how difficult the borrower’s financial situation is before a bankruptcy judge can justify discharging his or her loans.
It’s not just young people struggling to pay back student loan debt but more and more retirees are struggling due to this student loan debt burden. An estimated 700,000 seniors on Social Security are still paying off student loans. Recently nearly 160,000 of these retirees have had their disability and retirement payments garnished to pay down student loan debt.
If you are in debt up to your eyeballs, you look to the bankruptcy laws to assist you in digging out from underneath the weight of debt and begin over.
That, after all, is what the law's designed to accomplish – provide you with another possibility to place yourself in a better financial place.
On Wednesday, University of Phoenix's parent Apollo Education Group announced that the business and marketing methods of the for-profit school are now under investigation by the Federal Trade Commission (FTC). CNNMoney.com reports that Apollo will "cooperate fully" with the FTC research, which requires them to provide the federal company with papers on their finances, advertising, certification, and army recruitment practices from the last four years.
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.”
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.”
Are you struggling under the weight of a student loan? You’re not alone.
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.
Borrowers regularly refinance mortgages and other loans whenever interest rates drop. So why maybe not student loans?
Refinancing options for student-loan financial obligation have actually been hard to come by, but a handful of promising advancements are providing borrowers better possibilities of climbing off from under the $1 trillion owed by former pupils for their university costs.
President Obama vowed to expand a program limiting repayment of federal student loans to 10% of a borrower’s earnings, and the U.S. Senate is thinking about a costs that would give more security to students whom use private loans.
“We want more youthful people becoming instructors and nurses and social workers,” Obama said Monday while announcing the expansion of the Pay As You Earn system. “We want youthful individuals to be in a position to go after their dreams. And we want more young people who act responsibly to be in a position to manage their financial obligation over time.”
But some in the private sector are stepping up as well.
While it's nevertheless hard to refinance through huge banking institutions, a handful of newer, much more innovative startups have actually figured out a method to make life easier for student borrowers while still making a revenue for on their own.