The recent focus from the Presidential candidates on the economy and the future of student loans has caused me to look at the connection between a rate hike in the Federal Interest Rate the future of student loans, both Private and Federal.
When we speak of student loan debt, we really have to talk in terms of long term debt. With the national average of student loan burden of current graduates exceeding $30,000.00, addressing that debt load and arriving at a manageable student loan debt resolution option will take a long time. Therefore, the effects of any rate increase, even if it is incremental, will have a huge long term negative impact on addressing the repayment of student loans. According to the Wall Street Journal, 97% of experts predict an increase over the next year.
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.”
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.
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.
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.
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