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Recent Posts in Student Loans

  • Redefining "Undue Hardship" May Make it Easier to Discharge Student Loan Debt in Bankruptcy

    Posted By Allmand Law Firm, PLLC || 28-Oct-2015

    Student loan debts have only ever been dischargeable by bankruptcy under the most dire of circumstances, but student loan write-offs may soon be easier to accomplish if the Obama administration’s proposal is approved. The Department of Education recently released a report identifying solutions they believe will benefit people who are struggling to repay their loans. This would involve the ...
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  • Can Student Loan Debt Affect Our Nation's Future Economic Growth?

    Posted By Allmand Law Firm, PLC || 9-Sep-2015

    Students across the U.S. have accumulated so much student debt since the 2008 recession that it now poses a threat to our nation’s economic growth. Americans laboring under the assumption that they could pay back their loans after college are now finding that they have to put off important life decisions like getting married, starting a family, or buying property because of student loan debt ...
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  • Obama Introduces The New Pay As You Earn Plan Capping Student Loan Payments

    Posted By Allmand Law Firm, PLLC || 15-Jul-2014

    Springtime is supposed to be a joyful time for those who have graduated from college. However, for many members of the class of 2014, graduation means that they have left their student lifestyle behind, and they are about to meet their student loan debt obligations head-on. Typically, this reality is felt the most six months after graduation, when grace periods on student loans end and monthly ...
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  • Congress Gets More Pressure from the House to Forgive Student Loans in Bankruptcy

    Posted By Allmand Law Firm, PLLC || 17-Apr-2014

    More individuals in the House of Representatives are voicing their opinions on why student loan debt should be forgiven in bankruptcy. In recent months more efforts are being made to provide Congress with more insight on how student loan debt continues to be a huge problem. House Democrat Naomi Jakobsson proposed House Resolution 620 which advocates change of the bankruptcy rules by the ...
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  • What You May Not Know About Student Loan Debt & Bankruptcy

    Posted By Allmand Law Firm, PLLC || 16-Jan-2014

    Debtors may be under the impression they are unable to get student loan debt discharged. While this may be the case for some, others may qualify to have this debt eliminated but don't bother asking their attorney about it. When you file you are expected to list debt obligations you have outstanding, including those that are non-dischargeable. Yet, there are those who wait until after their ...
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  • Does the Automatic Stay in Bankruptcy Stop Student Loan Collections?

    Posted By Allmand Law Firm, PLLC || 26-Nov-2013

    The Automatic Stay and Student Loans If you have student loan debt that is being pursued by the creditor when you file bankruptcy, collection efforts come to a halt due to the automatic stay. This also ceases collection attempts through bank and wage garnishments. This can give debtors time to figure out how to repay their loan obligations if they are unable to get them discharged. The Brunner ...
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  • Why Debtors Should Talk to a Bankruptcy Attorney about their Student Loans

    Posted By Allmand Law Firm, PLLC || 9-Oct-2013

    You may wonder if it's really possible to get student loans discharged, especially after hearing someone you know personally got theirs eliminated in bankruptcy. If this is the case, you may want to review the possibility with a qualified bankruptcy attorney in Dallas-Fort Worth. There may be some information you might not know that could help you make loan payments affordable, or you may ...
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  • How Chapter 13 Bankruptcy Can Help You Deal with Student Loan Debt

    Posted By Allmand Law Firm, PLLC || 23-Sep-2013

    Chapter 13 bankruptcy is a repayment approved by the bankruptcy court based on your income. While student loans are almost impossible to get discharged in bankruptcy, you can use the filing to help you reduce the amount you pay or you can delay making payments during the Chapter 13 repayment period. Students loans can be discharged when a debtor proves repaying it may cause hardship (also referred ...
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  • Could Changing Bankruptcy Laws for Student Loans Improve the Economy?

    Posted By Allmand Law Firm, PLLC || 11-Sep-2013

    A recent report completed by the Center for American Progress looks at how the economy could benefit from student loan discharge. While getting student loan debt eliminated in bankruptcy can be done only under strict circumstances, many hope lawmakers reconsider making changes to a bankruptcy law that dates back to the mid-1970s that made getting rid of such debt literally impossible. Many find it ...
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  • New Report Supports Student Loan Discharge in Bankruptcy

    Posted By Allmand Law Firm, PLLC || 30-Aug-2013

    The Center for American Progress (CAP) released a report that suggests Congress should reclassify how student loan debt is discharged in bankruptcy. The report encourages Congress to review laws for both private and federal loans and how they could be handled in bankruptcy. Currently, student loan debt is almost impossible to discharge and it has been that way since it was made into law back in ...
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  • More Student Loans Getting Wiped Out in Bankruptcy

    Posted By Allmand Law Firm, PLLC || 15-Jul-2013

    While it is true there are special requirements to meet in order to get student loan debt discharged in bankruptcy, more debtors are being granted elimination of the debt. Recent reports have reviewed a number of previous bankruptcy filings by consumers over the last few years that have included student loan debt, and the outcome of many filings show there is light at the end of the tunnel. It ...
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  • When Student Loan Debt Makes It Difficult to Pay Other Financial Obligations

    Posted By Allmand Law Firm, PLLC || 2-Jul-2013

    Many people are under the impression that bankruptcy will not eliminate or discharge student loan debt. While this is true, it may not be the case for everyone. In some cases, student loan debt may be causing the household an undue hardship. This may allow student debt to be eligible for elimination, but even if you are struggling to make payments on non-student debt such as credit card bills, ...
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  • Some May Qualify for Student Loan Debt Discharge in Bankruptcy but Don't Attempt To Do So

    Posted By Allmand Law Firm, PLLC || 8-Mar-2013

    Debtors have heard over and over again that student loan debt is not eligible for discharge, unless they meet standards related to undue hardship. But, a recent study reviewed student loan discharges in bankruptcy with 4 out of 10 people being successful at getting their debt eliminated. While this may not seem like much, it actually brought up another issue; more debtors may have qualified to get ...
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  • Senators Continue Push for Private Student Loan Debt Discharge in Bankruptcy

    Posted By admin || 25-Feb-2013

    Could private student loans be eligible for discharge in bankruptcy? The Fairness for Struggling Students Act of 2013 is legislation recently reintroduced to Congress that aims to get private student loans eligible for elimination under Chapters 7, 11 and 13. The Act is working to reverse changes made to the bankruptcy code back in 2005 that made student loan debt ineligible for discharge. The ...
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  • Congress Urged by Obama Administration to Include Student Loan Debt in Bankruptcy

    Posted By admin || 25-Jul-2012

    While the push for student loan debt to be discharged in bankruptcy continues, the Obama Administration is pushing Congress to act on the issue. The Administration, along with other political figures, claims the bankruptcy code should be revised to allow student loan debt to be dischargeable. While all types of student loan debt may not be considered for elimination in bankruptcy, the act may help ...
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  • Student Loans and Bankruptcy

    Posted By admin || 14-Jun-2012

    Student loan debt has been part of an ongoing debate when it comes to the subject of getting them discharged. While the debt in most cases cannot be discharged, a bankruptcy filing may help you gain advantages in repaying what is owed. The only way student loan debt is discharged or eliminated is when an "undue hardship" has been created making it virtually impossible for the loan to be repaid. ...
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  • Top Senate Democrat Joins the Push for Student Loan Bankruptcy Discharge

    Posted By admin || 4-Apr-2012

    According to the Washington Post, earlier this week Senate Majority Whip Richard J. Durbin (D-Ill) called for rules to be changed regarding student loan debt being discharged in bankruptcy. At a judiciary hearing Durbin addressed what consumer groups are calling the nations next potential "debt bomb." The Federal Reserve Bank of New York claims close to $900 billion dollars in student loans are ...
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  • Bankruptcy Group Pushes for Student Loans to be Dischargeable

    Posted By admin || 6-Mar-2012

    The National Association for Consumer Bankruptcy Attorneys (NACBA) is pushing to have the bankruptcy code revised to change the way student loans are being treated according to a recent report by Reuters. The bankruptcy group feels that college graduates should be allowed to get student loan debt discharged; an argument that is being presented to Congress but not for the first time. Parents, as ...
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  • How to File for Bankruptcy with Student Loans

    Posted By admin || 29-Feb-2012

    There is no denying that higher education doesn't come cheaply. With the nation's top private colleges costing upwards of $40,000 for tuition and fees alone (and many public universities not far behind), it is obvious that more students than ever before are turning to student loans to fund the cost of their education. However, student loan debt and a stagnant economy have created a perfect storm ...
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  • More Americans Struggling to Pay Student Loan Debt

    Posted By admin || 27-Feb-2012

    MSNBC recently did a report on the effects unpaid student loans are having on thousands of Americans, and from the looks of it the economy may suffer if those who owe on outstanding loans don't get the financial relief needed in order to stay afloat. More and more people owe thousands toward these loans and one of the main issues is that they cannot be discharged in bankruptcy; a measure that many ...
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  • Student Loans Push College Graduates Into Bankruptcy

    Posted By admin || 1-Dec-2011

    Student loan defaults increased from 7 percent to 8.8 percent in 2010 according to a report released by the U.S. Department of Education. And many of those student loan borrowers who have fallen into default are filing bankruptcy hoping to receive some type of student loan debt relief. In 2010 13.6 percent of debtors filing bankruptcy held a college degree. That's an increase from 2006 when only ...
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  • For-Profit College Student Loans Should Be Dischargeable In Bankruptcy

    Posted By admin || 21-Sep-2011

    For-Profit Student Loans and Bankruptcy According to a report released by the U.S. Department of Education, nearly half of student loan defaults come from for-profit colleges. Many for-profit schools receive up to 80% of their revenue from student loans; but their dropout rates are so high that in some instances the vast majority of students never receive a degree. As it stands now, it is ...
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  • Should We Really Do Away With Federal Student Loan Limits?

    Posted By admin || 7-Jul-2011

    The ironic thing about what's happening in our economy is that while ordinary Americans are losing jobs and experiencing salary cuts, the cost of living continues to rise. These rising costs include the cost of education. A matter of fact, the cost of education is rising so much that some proponents of a college education are pushing for the banishment (or at least an adjustment upwards) of the ...
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  • Post-Bankruptcy Survival: Borrowing Student Loans

    Posted By admin || 13-Jun-2011

    Some debtors exiting bankruptcy may decide to return to school and earn a degree. To finance that education, especially if they are a non-traditional student, or if they are trying to earn a post-graduate degree, student loans are usually a requirement. But what are some of the things post-bankruptcy debtors should consider before they take out a student loan? Let's take a look at just a few: The ...
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  • Student Loans As Income On Credit Card Applications?

    Posted By admin || 19-Jan-2011

    A recent study on the impact of the Credit Card Act on students conducted by Jim Hawkins at the University of Houston Law Center, surveyed over 300 undergraduates in November and found that a full 29% of students under 21 who obtained a credit card since starting school this academic year used student loan proceeds as part of the income they reported to card issuers in their credit card ...
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  • I Took Out A Parent Plus Student Loan, Can I Discharge It In Bankruptcy?

    Posted By admin || 1-Dec-2010

    Can a Parent Plus Student Loan Be Discharged in Bankruptcy? Like most other student loans, a Parent Plus loan is very difficult to discharge in bankruptcy. However, below are a few other options for handling your Parent Plus student loan: If you decide to file bankruptcy, do a little planning beforehand. Will a discharge of your other debts make it easier for you to repay your Parent Plus student ...
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  • Student Loans, Bankruptcy And Proving Undue Hardship

    Posted By admin || 9-Nov-2010

    Student Loans and Proving Hardship Proving that student loans have become an undue hardship is for most people very difficult in bankruptcy. Below are a few things that could get in your way when asking for an undue hardship student loan discharge in bankruptcy: Failing to get a job which pays a decent wage based on your education and/or skills. The bankruptcy court will not look favorably upon an ...
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  • Are Student Loan Debit Cards The Credit Card Industry's Backdoor To College Campuses?

    Posted By admin || 23-Oct-2010

    The passing of the Credit Card Act made it difficult for credit card companies to target financially vulnerable college students; but are student loan debit cards a backdoor onto college campuses and into students' wallets? Millions of students are now using debit cards bearing the MasterCard logo and their college emblem to access their student loans. The debit cards are issued by a company ...
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  • Are Private Student Loans Destroying Both Students And Parents?

    Posted By admin || 4-Oct-2010

    More than half of all student loans issued are private student loans. Despite their cost, lack of deferments for unemployment or disability and their nondischargeability in bankruptcy, private student loans are gaining popularity. As the price of education rises, many students are depending on private student loans for not only their graduate education; but also their undergraduate education and ...
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  • College Life and Bankruptcy

    Posted By admin || 27-Sep-2010

    It's an unfortunate reality; but many college students have a disproportionate amount of debt compared with those who are not in college. Even with the recent Credit Card Act, students are still taking on unprecedented amounts of credit card debt, student loan debt and some are even taking the leap to purchase a home. Here are few tips on surviving financially during your college years: Limit the ...
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  • 3 Reasons Why Unemployed Must Use Caution When Taking Out Student Loans

    Posted By admin || 25-Sep-2010

    Since the rise of long-term unemployment, many debtors have turned to higher education as a solution. The result is that Americans now collectively owe $829.8 billion in student loans with an estimated $300 billion of those student loans being incurred in the last four years. And while sensible borrowing for higher education is generally believed to be good, many consumer advocates fear that the ...
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  • Repaying Student Loans, Child Support And Other Nondischargeable Debt After Bankruptcy

    Posted By admin || 10-Sep-2010

    Child Support and High Student Loan Debt Bankruptcy discharges many debts; but there are certain debts such as student loan debt and child support which are generally not dischargeable in bankruptcy. And while there are some ways to discharge student loans during bankruptcy, it is rare. So How Does One Repay This Debt After Bankruptcy? Below are a few tips: Take an honest look at your finances ...
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  • Repaying Your Student Loans After Bankruptcy

    Posted By admin || 19-Aug-2010

    Repaying Your Student Loans Post-Bankruptcy Most bankruptcy debtors are unable to discharge their student loans in bankruptcy, that's why creating a viable plan for repaying student loans after bankruptcy is so important. Here's what you need to know: Consolidate Your Student Loans Consider consolidating your student loans under the Direct Loan government plan. If you took out student loans that ...
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  • How To Borrow Student Loans Responsibly and Save Your Future Finances

    Posted By admin || 13-Aug-2010

    For many Americans, the road to bankruptcy often begins with the first day they enroll in college. Student loan debt has become such a common fixture in our country's higher educational institutions that up to 80 percent of college students depend on student loans to finance their college education. Below are a few tips on how college students can use student loans responsibly and protect their ...
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  • Student Loans, Bankruptcy And The Brunner Test

    Posted By admin || 9-Aug-2010

    Many students who have recently graduated from the nation's colleges and universities are finding themselves deluged with a massive amount of student loan debt they simply can't afford to pay with all of their other financial responsibilities. Fortunately, bankruptcy may help them relieve the financial burden student loans cause by making it easier to discharge their other debts or in some cases ...
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  • Lifting The Heavy Burden Of Student Loans

    Posted By admin || 30-Jun-2010

    Student loans are the bane of many debtors' existence. Accrued before most debtors reached their 25 th birthday, student loans can be like that youthful mistake that you just keep paying for well into adulthood. While the premise of the student loan system is good, giving low-income and moderate income students the opportunity to attend college, the aftermath of so many student loans giving to so ...
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  • How To Prove That Repaying Your Student Loans Creates An Undue Hardship

    Posted By admin || 15-Jun-2010

    Student loans have become a hot topic in the past few months. Many legislators want to make it easier to discharge student loans in bankruptcy especially if they are not issued directly through the federal government. For debtors considering Chapter 7 bankruptcy, it is already possible to discharge your student loan debt; but only if they cause an undue hardship. But how do you prove that your ...
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  • I Defaulted On My Student Loans Now What?

    Posted By admin || 9-Jun-2010

    Defaulting on Student Loans Many debtors graduating from college are mired in unemployment which is making them unable to repay their student loans and other debts. If a debtor is more than 270 days late on their student loan payment, they are considered in default. What Should I Do if I Default on My Student Loans? Determine if you have a private student loan or a federal student loan. While ...
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  • Three Changes That May Keep Some College Graduates Out Of Bankruptcy

    Posted By admin || 8-Jun-2010

    Extended dependent healthcare coverage for unmarried children up to the age of 26. Under the health care bill, as of September 23, 2010 (if all goes as planned) many youth will have access to their parents' healthcare coverage through college and even afterwards during a time when many college graduates struggle financially. In recent years there has been an increase in the number of college ...
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  • Private Student Loans, Bankruptcy And You

    Posted By admin || 6-Jun-2010

    Private student loans are a hot topic right now in the news and in the legislature. Currently, some lawmakers and consumer advocate groups are fighting to make private student loans dischargeable in bankruptcy like other unsecured consumer debt such as credit cards; but there is a lot of resistance. Right now private student loans, which are student loans issued by private banks and not the ...
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  • Three Reasons Parents Should Think Twice Before Taking Out Student Loans For Their Kids

    Posted By admin || 2-Jun-2010

    The government just released a report saying that 7 out of 10 high school graduates will go on to college. That's up from 6 out of 10 in 2001. Unfortunately, while the number of entering college freshmen has increased, the cost of tuition for both state and private universities is steadily rising. What this means is that many more students and their parents are choosing to take out expensive ...
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  • Handling Student Loan Debt After Bankruptcy

    Posted By admin || 2-Jun-2010

    Student Loan Debt After Bankruptcy Like child support obligations and some types of taxes, student loan debt will most likely survive your bankruptcy filing unless you can prove that repaying them will cause an undue hardship. So how does a debtor get a fresh financial start after bankruptcy even if they still need to repay student loans? Let's take a look at few tips: Immediately contact your ...
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  • Three Reasons Why Private Student Loans Should Be Dischargeable In Bankruptcy

    Posted By admin || 30-May-2010

    The "Private Student Loan Bankruptcy Fairness Act of 2010" was introduced in the House on April 15 th and if passed into law, it could make it easier for debtors who have private student loan debt to discharge that debt in bankruptcy. Currently, it is nearly impossible for debtors to discharge their student loans in bankruptcy; but under the new law, private student loans (not federal student ...
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  • Sallie Mae Blames New Student Loan Law For Job Losses

    Posted By admin || 28-May-2010

    Sallie Mae announced that a new law cutting out private lenders in the federal student business and stricter underwriting rules for private student loans will cost the company 2500 jobs. The law strips the middleman role in student lending away from banks. It's expected to save at least $60 billion in fees that went to banks to process government-backed student loans. Sallie Mae, which wrote a ...
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  • House And Senate Consider Bankruptcy Relief For Private Student Loan Borrowers

    Posted By admin || 27-May-2010

    The House and Senate are reviewing legislation that could allow bankruptcy courts to treat private student loans like other unsecured debt such as credit cards, which could mean that borrowers would have the ability to discharge private student loans in bankruptcy. Currently, both private and government backed student loans are treated like other hard to discharge debts such as taxes and domestic ...
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  • Debtors May Not Unfairly Favor Student Loan Creditors During Bankruptcy

    Posted By admin || 10-May-2010

    In the Chapter 13 bankruptcy case of Parrott, Gregory S. and Karen S.; In re, the bankruptcy court refused to confirm the debtors' repayment plan saying that the debtors unfairly treated the student loans as long-term debt to the detriment of unsecured creditors. The details of the bankruptcy case: The Chapter 13 debtors' plan proposed to bring payments on two student loans current while ...
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  • Chapter 13 Bankruptcy And Student Loan Discharge

    Posted By admin || 9-May-2010

    In the Chapter 13 bankruptcy case of Cassim, Jennifer D.; In re (Cassim v. Edu­cational Credit Management Corp.) , the 6th U.S. Circuit Court of Appeals ruled that a Chapter 13 bankruptcy debtor did not need to wait until the end of the case to ask the bankruptcy court to determine whether their student loans would be discharged. The debtor filed for Chapter 13 relief on April 11, 2007. She was ...
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  • New Health Care Reform Bill May Hold Some Surprises For Student Loan Debtors

    Posted By admin || 8-May-2010

    In a bill that is suppose to address the current health care issues facing the country there are a few surprises for debtors struggling under the weight of student loans. As of July 2010, all new federal student loans will be issued directly from the U.S. Department of Education, cutting out banks as middle-men. This doesn't mean that private bank loans will disappear totally; but they may simply ...
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  • A Supreme Court Victory For Student Loan Debtors

    Posted By admin || 30-Apr-2010

    A Student Loan debtor who received a bankruptcy discharge on their student loans won the battle to keep his student loan bankruptcy discharge. The Supreme Court ruled that although an "undue hardship" hearing should have been held but was not held, the debtor should not be punished by taking away the bankruptcy discharge of his student loans. The details of the case: Espinosa took out student ...
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  • Three Things You Need To Know About Bankruptcy And Student Loans

    Posted By admin || 19-Mar-2010

    Facts About Bankruptcy and Student Loans Student Loans are Very Difficult to Discharge in Bankruptcy However, they can be discharged in either Chapter 13 or Chapter 7 bankruptcy under certain circumstances. There are two main reasons for discharging student loans in bankruptcy: If the debtor dies if repaying the debt would cause an undue hardship on the debtor. The fact that "undue hardship" has ...
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  • The State Of The Union: Student Loans and Bankruptcy

    Posted By admin || 29-Jan-2010

    Many Americans drowning in student loan debt and many of those considering college listened to President Obama with much anticipation as he tackled the issue of crippling debt burdening most Americans who pursue a college education. President Obama announced that he was working with Congress to create a national program which would ease the burden of student loan debt. The President said: To make ...
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  • Are There Other Ways To Discharge My Student Loans Besides Bankruptcy? (Part II)

    Posted By admin || 15-Jan-2010

    As we mentioned in Part I, most debtors find it difficult to discharge their student loans in bankruptcy. However, there are several other ways to discharge your student loans before, after or even during bankruptcy. As we mentioned in Part I of " Are There Other Ways To Discharge My Student Loans Besides Bankruptcy ? ", a debtor who cannot discharge their loan in bankruptcy can receive a ...
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  • Are There Other Ways To Discharge My Student Loan Besides Bankruptcy? (Part I)

    Posted By admin || 14-Jan-2010

    As we have previously mentioned, discharging a student loan in bankruptcy can be difficult to say the least. In order to receive a bankruptcy discharge for your student loans, you must be able to prove that repaying the loan would cause an undue hardship. Unfortunately, "undue hardship" has not been specifically defined. This lack of a clear definition has created a situation where two debtors ...
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  • Are Low-Income Student Loan Borrowers At Higher Risk Of Default?

    Posted By admin || 28-Dec-2009

    Over 21 percent of student loan borrowers who attended a for-profit college default on their student loans within 3 years, according to a report released by the U.S. Department of Education. For-profit colleges claim that the high numbers of low-income students attending their institutions are inflating their default rates. So does being a low-income student increase your chances of defaulting on ...
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  • Supreme Court Hears Student Loan Dispute

    Posted By admin || 7-Dec-2009

    Last year we highlighted a Chapter 13 bankruptcy case where student loan debt was partially discharged. The bankruptcy discharge was challenged by the creditor and has made its way to the Supreme Court. Here is an overview of the decision made by lower courts last year: In the case of ( Espinosa v. United Student Aid Funds Inc. , No. 06-16421, 9th Cir. 10/02/08) the court stated: "Our ...
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  • Avoiding Student Loans Seems Impossible For Texas' Future College Students

    Posted By admin || 29-Oct-2009

    According to an article in the Dallas Morning News, Parents who invested in Texas' prepaid tuition plan to pay for their child's education and avoid student loans may be out of luck after November 30, 2009. On November 30 th new rules governing the program take effect that will change the way the Texas Guaranteed Tuition Plan calculates refunds. The article said: "The plan, which started selling ...
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  • U.S. Supreme Court To Consider Student Loan Discharge In Bankruptcy

    Posted By admin || 25-Oct-2009

    According to an article in Forbes, the U.S. Supreme Court will listen to oral arguments for and against the discharge of student loans in bankruptcy. The debate will center around the Chapter 13 bankruptcy case of Francisco Espinosa who was able to obtain a partial discharge of his student loans in bankruptcy. That discharge was later challenged by the student loan lender. The article said: ...
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  • Are Private Students Loans The Subprime Arena Of Higher Education?

    Posted By admin || 12-Oct-2009

    Private student loans have been in the headlines lately with government efforts to restrict them and make them eligible for bankruptcy discharge. But what isn't being talked about is the fact that private loans are often the last resort of desperate students who can't find money anywhere else for their education. Normally, students looking for money for college will receive grants, scholarships ...
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  • Will Student Loans Soon Become Dischargeable In Bankruptcy?

    Posted By admin || 27-Sep-2009

    Student loans are almost impossible to discharge in bankruptcy, with exception of undue hardship as most graduates who have fallen upon hard times have eventually discovered. But according to an article in Inside Higher Education, legislators are now moving to consider altering the bankruptcy code to change the way private student loans are treated during bankruptcy. A quick overview: Private ...
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  • Texas Student Loan Defaults 2nd Highest Nationwide

    Posted By admin || 24-Sep-2009

    According to an article in the Dallas Morning News, Texans are defaulting on their student loan debt at an alarming rate. The article said: "In Texas, 9.3 percent of borrowers defaulted on their federal student loans last year - the highest rate in nearly a decade. Only Arizona had a higher rate, 9.8 percent. The national average was 6.7 percent, based on the data released this week." Many Texans ...
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  • Big Banks May Be Locked Out Of Student Loan Subsidies

    Posted By admin || 24-Sep-2009

    According to an article in Reuters, the U.S. House of Representatives approved legislation last week that would cut major banks and student loan giant Sallie Mae out of a large slice of the $92 billion university student loan business if passed by the Senate. Under the bill H.R. 3221 --the Student Aid and Fiscal Responsibility Act of 2009, all new student loans would originate with the Direct ...
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  • Peer-To-Peer Lender Borrower Beware

    Posted By admin || 23-Sep-2009

    There's an interesting article in the Star-Telegram about the increase in the number of peer-to-peer loans for college students. The author cites a contraction of student loan lending and restrictions on credit card lending to students as a major factor contributing to the uptick in the number of peer-to-peer loans amongst college students. The article said: "As credit continues to be tight, ...
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  • Mental Illness Fails To Qualify As Student Loan Hardship

    Posted By admin || 22-Sep-2009

    In the bankruptcy case of Robison, Christopher D.; In re (Robison v. Kentucky Higher Education Student Loan Corp., et al.) , the bankruptcy court ruled that the debtor's student loan was nondischargeable and that the debtor's mental illness was not enough to qualify as a hardship. The details of the bankruptcy case: The Chapter 7 bankruptcy debtor is a 35 year old, married man with two children, ...
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  • Taking the Offensive in Student Loans

    Posted By admin || 10-Sep-2009

    We've all heard the saying that the best offense is good defense. The same goes with student loan debt. The best offense is to be defensive in applying for student loans. Historically, students and parents borrowed money for a majority of college expenses. However, over the last two years, more parents and students are become more prudent in their choices regarding college to alleviate many of the ...
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  • Student Loans and Bankruptcy: Can I Discharge My Loans?

    Posted By admin || 8-Sep-2009

    Many people ask me about discharging student loans when they're looking into filing for bankruptcy. Typically, student loans aren't discharged during bankruptcy proceedings. It's not impossible to accomplish if you can show that paying the student loan debt "will impose an undue hardship on you and your dependents". Bankruptcy judges use various tests to determine whether a borrower has proven ...
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  • Getting to Know Reaffirmation

    Posted By admin || 1-Sep-2009

    Reaffirmation is where you consent to paying back all or part of a debt even though you may not have had to. Before the 1978 Bankruptcy Code put an end to it, creditors used to trick debtors into reaffirming their debts. The process of tricking debtors isn't as complicated as you would think, because all the creditor had to do was get the debtor to admit knowledge of the debt. Debtors can thank ...
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  • Payday Loans: Saving Yourself Today by Buying Trouble for Tomorrow

    Posted By admin || 26-Aug-2009

    Increasingly, down-on-their-luck Americans are turning to companies who offer payday loans to make ends meet one month in the hopes that the next will be better, allowing them to pay off the amount of money they borrowed along with the interest charged by the payday lender. There's just one problem with that scenario. The sky-high interest rates often send the already strapped-for-cash borrower ...
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  • Student Loan Debtor Denied Discharge Due to ICRP

    Posted By admin || 7-Aug-2009

    A divided 8th U.S. Circuit Court of Appeals panel reversed a decision allowing a Chapter 7 debtor to discharge his student loans because they found that he did not face an undue hardship despite the immense amount of the loans. In the case of Educational Credit Management Corp. v. Jesperson (In re Jesperson), No. 07-3888 (8th Cir. 07/08/09), the debtor faced student loan debt that had grown to ...
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  • Student Loans and Your Financial Health

    Posted By admin || 2-Aug-2009

    As the economy worsens, many adults who have experienced a job loss are thinking about returning to school to learn a new skill and become more manageable in today's job market. Unfortunately, getting a second degree usually means more student loan debts, especially for the "mature" student. If you're considering returning to school and taking out student debts there are a few things you may want ...
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  • Student Loans and Bankruptcy: Can I Discharge My Loans?

    Posted By admin || 20-Jul-2009

    Discharging Student Loans and Bankruptcy Many people ask me about discharging student loans when they're looking into filing for bankruptcy. Typically, student loans aren't discharged during bankruptcy proceedings. It's not impossible to accomplish if you can show that paying the student loan debt "will impose an undue hardship on you and your dependents". Bankruptcy judges use various tests to ...
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  • Income Contingent Repayment Plan for Student Loans Now Available

    Posted By admin || 29-Jun-2009

    According to an article in the Star-Telegram, the new income contingent repayment plan for federal student loans is now available. Under the new plan, borrowers can repay their student loans based on their income and the balance will be forgiven after 25 years. The article said: "The income-based repayment plan applies to the Federal Family Education Loan, and to Direct Loan borrowers on all ...
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  • What You Should Know About Student Loans During the Recession

    Posted By admin || 15-Jun-2009

    For those students who took out student loans, now is probably the worse time to be graduating. The economy is still in the tank and those students loans aren't going away. Plus, the average student has about $22,000 in student loans and may feel overwhelmed to the point of defaulting (which is a no-no). To avoid default here's some information about student loans that could empower you to get a ...
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  • School Transcripts Cannot Be Held Ransom After Bankruptcy Discharge

    Posted By admin || 3-Jun-2009

    If a debtor's delinquent school tuition is discharged in bankruptcy, the college/university is prohibited from refusing to release the debtor's transcript/diploma. Most of us know that student loans are nearly impossible to discharge; but school tuition is not typically considered a student loan and can be discharged during bankruptcy. For example, if a debtor who was paying tuition at a ...
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  • More Relief For Debtors With Student Loans

    Posted By admin || 7-May-2009

    According to an article in the Star-Telegram, student loan repayment plans and student loan forgiveness programs just became more beneficial to students while student loan consolidation may not be such a good bet for now. The article said: Federal student loans made after July 1, 2006, are at a fixed rate that cannot be changed in consolidation, said Mark Kantrowitz, author of FastWeb College Gold ...
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  • Texas Legislators Wrangle Out Of Control College Tuition

    Posted By admin || 6-May-2009

    According to an article in the Dallas Morning News, the Texas Senate voted on Monday to put strict limits on how much state universities can increase tuition and other charges. The article said: After several straight years of huge tuition hikes in Texas, the Senate voted Monday to sharply limit increases in the future, including a 5 percent annual cap for the state's larger universities... The ...
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  • Student Loans and Income Contingency Repayment Plan

    Posted By admin || 16-Apr-2009

    If you're a student loan debtor who is strapped for cash and having difficulty repaying your student loans, you've probably heard of the William C. Ford Income Contingent Repayment Plan. The income contingency repayment plan allows student loan debtors to repay their student loans based on their current income. Depending on the debtor's income, the student loan payments can be reduced to as little ...
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  • Loan For Apprenticeship Treated As Student Loan

    Posted By admin || 6-Apr-2009

    There was an interesting bankruptcy case Kesler, Michael O.; In re (Indiana/Kentucky Regional Council of Carpenters Joint Apprenticeship and Training Committee v. Kesler), involving a debtor who was refused a discharge for loans who took out for carpenter training. The details of the bankruptcy case: While an apprentice in a training program operated by the Central Indiana District Counsel of ...
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  • Rare Circumstances Move Bankruptcy Court To Discharge Student Loans

    Posted By admin || 12-Jan-2009

    In the case of Mabry v. U.S. De­partment of Education National Payment Center the bankruptcy court discharged the student loans of a debtor because they thought it unlikely that the debtor would ever have meaningful employment and that he would never be able to repay his student loans. The debtor who is currently "penniless, homeless, unemployed and receiving food stamps" graduated from the Ivy ...
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  • Something Fishy About Your Student Loan?

    Posted By admin || 30-Dec-2008

    As we have discussed on this blog many times, student loans can be a financial thorn in the side of many debtors. There are nearly impossible to discharge and they eat away at debtor's assets for years after they've graduated from college. But there's something else fishy about student loans that many students need to be wary of...private student loans. Many students assume that when they take out ...
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  • Can I Discharge College Tuition In Bankruptcy?

    Posted By admin || 18-Dec-2008

    Bankruptcy and Tuition Debt Anyone who has taken out student loans for college and experienced financially trying times knows that student loans cannot be discharged in bankruptcy unless they cause an "undue hardship" to the debtor, which means rarely. But what about unpaid tuition, can unpaid tuition be discharged in bankruptcy? Well under normal circumstances, yes tuition can be discharged in ...
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  • Pay More To Student Loan Creditors In Chapter 13 Bankruptcy

    Posted By admin || 12-Nov-2008

    For those debtors who cannot discharge their student loans in bankruptcy, it is important to pay as much as possible on the student loans while in Chapter 13 bankruptcy. One way a debtor can commit more of his/her income to repaying student loan debt while in Chapter 13 bankruptcy, is to repay the loans on their own instead of having the bankruptcy trustee pay on their behalf. A debtor can simply ...
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  • Student Loan Debt - Dischargeable In Chapter 13 Bankruptcy?

    Posted By admin || 12-Nov-2008

    Anyone who has ever taken out a student loan is quite aware of the fact that student loan debt is next to impossible to discharge in bankruptcy unless the debtor can prove "undue hardship." But the 9 th Circuit Court ruled in October that student loan debt could be discharged through the confirmation of a Chapter 13 plan if the creditor is given notice of the plan and does not object, ( Espinosa ...
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  • Texas' New Prepaid Tuition Plan Beats Inflation

    Posted By admin || 15-Oct-2008

    Many middle-class families worry about increased inflation, student loan costs and the credit squeeze as they plan for their children's college education. But Texas state officials hope their new prepaid tuition plan, Texas Tuition Promise Fund, will help families get a head start on saving for college. The prepaid plan will cover only undergraduate education, allowing families to lock in tuition ...
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