Student Loans

Student Loan Repayment Plans: Income-Based Repayment & Forgiveness

2020-04-30T02:14:44+00:00By |Comment(s):0 Comments

Student loan debt has been a topic of discussion by the media and politicians in the past few years. While some claim that student loan debt is crippling, there are repayment options available which can help student loan borrowers ease the burden of repayment. Here we examine the differences between the various student loan repayment options as well as common Q&As about student loan repayment plans.

Income-Based Repayment (IBR)

Income-based Repayment plan

Income-Based Repayment is generally considered less favorable for borrowers than other options. However, if you are a Federal Family Education Loan Program (FEEL) borrower, this is the only option you have available. Your payment is based on adjusted gross income for IBR. You can stay in IBR even if you stop qualifying due to

Top Student Loan Official Resigns in Protest

2020-05-01T19:00:01+00:00By |Comment(s):Comments Off on Top Student Loan Official Resigns in Protest

If you are one of the 44 million Americans with a government-backed student loan, you may have reason to be concerned. As of August 27, 2018, Seth Frotman, a top student loan official with the Consumer Financial Protection Bureau (CFPB), has officially resigned his post as student loan watchdog. In his scathing resignation letter addressed to CFPB acting director Mick Mulvaney, Frotman claimed that the CFPB was neglecting to serve the American people.

The Obama administration established the CFPB after the financial crash of 2008. Basically, the agency’s job is to protect American consumers by regulating credit unions, banks, mortgage servicers, payday lenders, and other financial institutions. Its main purpose is to promote transparency and fairness for

Can I Get Student Loans After Bankruptcy?

2020-05-01T19:08:19+00:00By |Comment(s):Comments Off on Can I Get Student Loans After Bankruptcy?

Qualifying for student loans after filing for bankruptcy greatly depends on the type of bankruptcy that was filed and whether the borrower is interested in getting federal or private aid. With federal loans a previous bankruptcy should have no impact on receiving student aid. If the borrower is looking to receive private loans, qualification will be impacted by: the type of bankruptcy filed, how long ago it was filed, and the borrower’s current credit standing.

Federal Loans

A previous bankruptcy should not affect a student’s ability to receive federal financial aid. Previously, borrowers who discharged federal loans through bankruptcy had to reaffirm their loans prior to receiving additional federal aid, but that is no longer the case and new aid can be obtained at any time.

Loans including Title IV and Perkins

Student Loan Bankruptcy Decision Finally Reached

2020-05-01T19:15:53+00:00By |Comment(s):Comments Off on Student Loan Bankruptcy Decision Finally Reached

Student loan debt has become a focus of discussion lately, as a political issue and as an issue that has a practical effect on many people’s lives. Students are increasingly taking on large amounts of debt to pay for higher education, the worth of which is increasingly doubtful. While a college education is still worth the cost, it is telling that the question is being raised at all.

Bankruptcy Purpose

Student Loan Bankruptcy Decision

The purpose of bankruptcy is to relieve people of the burden of debt. Student loan debt, however, has been one of the most difficult to discharge in bankruptcy. While there are clear guidelines for dealing with medical, credit card, and most other kinds of common debt in bankruptcy proceedings, student loan

How Does Bankruptcy Affect Student Loans?

2020-05-01T19:46:31+00:00By |Comment(s):Comments Off on How Does Bankruptcy Affect Student Loans?

Many debtors believe that if they file for bankruptcy that their student loan debt will still be there, however this is not always the case.  In many bankruptcy filings, student loans remain intact and must be paid, but in some cases, you may actually qualify for student load debt elimination.

Listing all debts

When you file for bankruptcy, you are asked to provide a truthful list of any outstanding financial obligations that you have.  It is important to include every outstanding debt, even those that are not normally dischargeable.  Many young people who file for bankruptcy do not include their student loans in their statements and do not ask their lawyers about the possibility of elimination until after they have filed.

ASK!

A good idea for you to take into consideration, if

How Your Student Loans Figure into Your Bankruptcy

2020-05-01T19:48:34+00:00By |Comment(s):Comments Off on How Your Student Loans Figure into Your Bankruptcy

Going to college is a very expensive endeavor. It is the reason why the majority of students who go to college end up having to get a student loan. These loans have to be paid off in a timely manner, or you will suffer the consequences of collections. Many consider bankruptcy as an alternative to paying off the student loans. While this is an option, you really need to know how the process works before you begin the process of discharging your debt.

How the Seven-Year Rule Is Missed

It used to be that the standard in American bankruptcy was the seven-year rule. This is the rule which states any loan that has not been active for seven years after the individual ceases to be a full-time student will not be discharged

The Student Loan Debt Bomb

2012-04-19T01:48:09+00:00By |Comment(s):Comments Off on The Student Loan Debt Bomb

We probably don’t have to tell you that it’s expensive to put yourself or a loved one through college.  Student loan debt has increased steadily to where we’re now seeing undergraduates averaging more than $23,300 in debt at graduation.  This is in addition to the average of roughly $3,000 in credit card debt for each college student.  If you consider the above, then take into account the fact that average income has declined or held steady over the past several years, it doesn’t take a math major to figure out that there is a problem at hand.

The Baltimore Sun recently published an article pointing out that student loan debt now exceeds credit card and auto loan totals. Millions of Americans are struggling to make ends meet as a result of high

Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

2012-03-27T01:41:03+00:00By |Comment(s):Comments Off on Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

On March 25, Bloomberg.com published a troubling report detailing the incentives offered to collection agencies attempting to collect on delinquent debts.  While it should come as no surprise that collections agencies are pushing the legal limits with their methods, at Abelmann Law we find it particularly concerning that the agencies are failing to advise individuals of the various repayment options available to them.  In many cases the result is increased financial hardship for families that are already struggling under a heavy debt burden.  Meanwhile, “successful” debt collection agents are rewarded with cash bonuses, foreign trips and gift certificates.
While the above-mentioned report focuses on debt collection practices in the student loan industry, we think you will agree that the problem does not end there.  If you are being

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