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Dear ED: Clarify Undue Hardship

On May 16, 2014, seven Congressmen/women sent a letter to Secretary of Education, Arne Duncan, asking for clarification of "Undue Hardship" to allow Federal student loans to be discharged in bankruptcy.  The signers of the letter were Senators Dick Durbin (D-IL), Jack Reed (D-RI) and Elizabeth . . .
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FDIC v Sallie Mae

On May 13, 2014, two consent orders were issued:  FDIC v Sallie Mae Bank and FDIC v Navient Solutions Inc. (formerly known as Sallie Mae, Inc.).  These are the results of the FDIC's investigation into Sallie Mae's alleged violations of the Servicemenbers Civil Relief Act (SCRA), Electronic Fund . . .
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“Bank on Students Emergency Loan Refinancing Act” in Plain English

Yesterday, Senator Elizabeth Warren (D-MA) introduced legislation aimed to help level the playing field for student loan borrowers.  The main goal is to lower interest rates on ALL student loans (Fed and Private) to a fixed amount for the duration of the loan term.  The theory being that if interest . . .
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What Happens to your Student Loans when you file Bankruptcy

If you've read anything on the internet about student loans, you know bankruptcy probably can't help you. Discharging student loan debt through bankruptcy is not impossible, but it is difficult, for two reasons: 1) The test is draconian with no objective standard, and 2) It is often cost . . .
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Does the Government Shutdown affect Student Loan Collections?

VinothChandar / Foter / CC BYNow that the government is shut down, there is a great concern about how this affects collections of student loans, default or not.  We first need to clarify that the shutdown only affects government agencies.  Guarantee agencies like ECMC, Great Lakes, etc. are not . . .
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Why Your Bankruptcy Lawyer Can’t Hide From Student Loan Law

Why don't lawyers who help people get out of debt know about student loans? When he filed for bankruptcy, private student loans could be wiped out without a hitch. This was in the old days, you understand - before the bankruptcy laws were overhauled in 2005. All his lawyer needed to do was . . .
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Private Student Loan Lender to the Rescue? Not Quite!

The Street ran an article today which I can only hope was their attempt at an April Fool's joke.  It's supposed to be a hopeful story about Sallie Mae creating a way for new borrowers to reduce their first year payments.  It's a crock! You see, what Sallie Mae offers is a year of interest only . . .
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The Get Out of Student Loan Debt Quick Craze

A Harvard business school grad paid off $90,000 in student loans in just 7 months. Awesome, or crazy? Yes that is awesome, and yes, that is crazy. Do the math and you'll quickly see that his average monthly payment was just shy of $13,000.  He was able to do it because he was budget conscious . . .
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Not all Consumer Attorneys are the Same

It's nearly midnight and I'm compelled to blog out of frustration.  Frustration from a new client because it's not the first time I've seen this. A woman asked me to review her student loan situation to see what can be done.  She is in default, she wants to get out and get her loans back on . . .
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