Debt-settlement companies are frequently scams that can send people into New York bankruptcy. They’ve appeared on this blog before (here and here), but now it appears they’re moving from credit card and mortgage relief into a new territory: student loans. On Friday, July 18, Marketplace, a publication run by American Public Media, published an article …
The big news in the education world is that Corinthian Colleges, a publicly traded company that owns three for-profit colleges, is in deep financial trouble. On June 19, 2014, the Department of Education believed that Corinthian was “falsifying job placement data used in marketing claims to prospective students, and [allegedly] altered grades and attendance.” As …
Beleaguered College Shows the Value of the ‘Closed School Discharge’ Read More »
Although it’s difficult to discharge student loan debt in a New York bankruptcy, there is good news for student debtors: President Barack Obama recently acted to accelerate changes to the underused income-based repayment program for debtors with federal student loans, called pay-as-you-earn (PAYE). Going forward, many people who borrowed a federal loan before 2007 will …
Fed Survey Finds Widespread Ignorance on Student Loan Collections Read More »
A week after the Consumer Financial Protection Bureau warned about senior citizens’ debt levels, the Pew Research Center issued a report on student debts owed by households on the opposite end of the age spectrum. Titled, “Young Adults, Student Debt, and Economic Well-Being,” Pew used survey data of 1,711 households headed by someone younger than …
Pew Research Center Finds Low Wealth Accumulation for Student Debtors Read More »
The circumstances in which student loans are dischargeable are often discussed by New York bankruptcy lawyers. More recently, the question of whether debtors who owe education loans to the federal government are obligated to enroll in income-sensitive repayment plans has come up. Another situation that’s likely to cause headaches is what happens to people who …
The Bankruptcy Implications of Co-Signing Student Loans Read More »
Most people who file chapter 7 bankruptcy in New York only intend to discharge credit card debt because mortgages and auto loans are secured by houses and cars, respectively, so debtors must continue payment on them to prevent foreclosure or repossession. Generally, though, a chapter 7 discharge applies to all unsecured debts, but that doesn’t …
What Debts Are Excluded From the Chapter 7 Discharge Order? Read More »
The New York Times greeted 2014 with an article detailing the allegedly “ruthless” tactics the Educational Credit Management Corporation (ECMC) uses when dealing with student loan debtors. Readers will recall ECMC as the creditor in recent student loan discharge cases that involve the issue of whether the debtor should be required to sign on to …
Talk to a New York Bankruptcy Lawyer When the ECMC Comes Knocking Read More »
In early December, the Project on Student Debt (“Project”) published its annual report on the average amount of student loan debt taken out by 2012 college graduates. It found that last year, graduates left school with $29,400 in loans on average, up from $26,600 in 2011. The Project calculates that graduate student loan debt levels …
Report: N.Y. College Graduates’ Student Loans Below National Average Read More »
The U.S. Department of Education (ED) monitors the default rate for federal student loans by calculating a three-year “cohort default rate,” which is the percentage of borrowers whose loans entered repayment within the last three years and are now well past delinquent status into default. Although the three-year cohort default rate is an improvement over …
How Government and Private Student Loan Creditors’ Collection Powers Differ Read More »
It’s rare for debtors to successfully discharge their student loans in bankruptcy, and now that the federal government offers income-sensitive repayment plans to borrowers, it’s a little easier for those who can’t pay to avoid default. Unfortunately, many debtors have private loans, or they’re already in default on their federal loans, which means filing a …
Chapter 13 Bankruptcy Can Benefit Student Loan Debtors Read More »
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