Illinois bankruptcy help for student loans Archives - Page 2 of 3

Bankruptcy Protection for Retired Americans

December 31, 2018

Today, the average household headed by those 60 years of age and older carries more than $55,000 in debt. Fifty percent of Americans 75 and older not only have some form of debt to tackle, but 25 percent are still chipping away at mortgage debt putting them in a potentially precarious position. Perhaps the most surprising statistic is that older Americans between the ages of 60 to 69 acquired more student debt in the last decade than younger people ages 18 - 29 adding to their overall debt … [Read more...]

Trading Student Loan Debt For Mortgage Debt

September 20, 2018

With the average undergraduate leaving college with $30,000 plus of debt and with no plans to purchase a home anytime soon, mortgage lenders are starting to get more creative. Mortgage lender Fannie Mae, for example, has laid out a plan for student loan borrowers, and parents who have cosigned loans, to trade student loans for mortgages, offering incentives which might be worth a look. First, by expanding cash out mortgage refinance options, borrowers can roll a higher interest student … [Read more...]

Student Loan Forbearance Warning

May 31, 2018

A new GAO (Government Accountability Office) report is warning student loan borrowers against taking forbearance on student loans for any extended period of time. A forbearance agreement is way to postpone payments to avoid defaulting on student loans when borrowers are hit with a difficult financial situation. Forbearance is offered to borrowers in 36 consecutive month increments to keep their accounts in good standing. While this may sound like a heck of a deal, the catch is that student … [Read more...]

Some Student Loan Debt Dischargeable in Bankruptcy

April 23, 2018

Of interest to individuals considering bankruptcy with student debt, a bankruptcy judge in Texas has denied a request by the student loan company, Navient, to dismiss a class action suit accusing the company of collecting on loans discharged through bankruptcy. As the case moves forward, it may provide the appellate court the opportunity to ring in on the question of whether loans historically exempt from bankruptcy discharge can now be considered when wiping the slate clean in a chapter 7 … [Read more...]

Pushing Back on Student Loan Debt Collectors

March 31, 2018

With few exceptions, student loans are not dischargeable debt through bankruptcy and, because it can be difficult to keep up, many borrowers are defaulting on their student loans. Creditors are quick to act by filing tens of thousands of lawsuits every year against borrowers who have fallen behind. Although creditors seem to wield all the power when suing people to recoup student loan debt, there are some defenses debtors can use to halt student loan collection cases. All too often, … [Read more...]

Bankruptcy Student Loan Forgiveness Evolving?

February 22, 2018

Of interest to the many Americans who have unpaid student loan debt they are unable to tackle: The Trump Administration indicated yesterday that it is considering allowing more borrowers to erase student debt in bankruptcy, signaling a new chapter in bankruptcy student loan forgiveness. Anyone who has contemplated bankruptcy may well know, federal law prevents the discharge of student debt in a bankruptcy with very few exceptions. Because of the stringent standards for cancellation of … [Read more...]

Student Loan Debt Collection Under Scrutiny

September 20, 2017

Millions of dollars of private student loans made over a decade ago by lenders such as Bank of America and JPMorgan Chase were later sold as debt to investors, who are now in hot water for illegal and abusive collection practices that may result in consumers receiving a refund. In fact, one of the nation's largest holders of private student loan debt, the National Collegiate Student Loan Trusts, has been ordered to give back millions of dollars to borrowers and cease many collection … [Read more...]

Student Loan Debt a Problem for Many Seniors

August 26, 2017

Seniors are the fastest growing category of student loan debtors. Many of the loans are not from their own college days, but were taken out to help their children and grandchildren in the face of skyrocketing education costs. Of course, many seniors are among the least able to tackle debt because many are living on a fixed income instead of pulling a paycheck. As a consequence, delinquencies on student loans among seniors is on the rise. Some federal loan borrowers have had their Social … [Read more...]

Student Loan Default Points to Larger Issue for Many

July 26, 2017

These days more and more people are falling behind on student loan payments. If you fail to pay your loans for 360 days, you may be in default which can wreak havoc on your credit worthiness now and in the future. Not only will your credit score take a hit, if you have past due federal student loans, Uncle Sam can be relentless. The government can garnish your pay, seize your tax returns and even dog you as you age by taking some of your Social Security. Oftentimes, an inability to pay … [Read more...]

Illinois Student Loan Debt Relief Case

April 10, 2017

The Wall Street Journal reports that two state lawsuits filed in Illinois and Washington claim that from 2000 to 2009, Sallie Mae extended billions of dollars in predatory, subprime student loans to borrowers likely to default. New details that have emerged out of the legal action reveal how the lender used subprime loans to build its business with colleges and universities, knowing that many of the borrowers would not be able to repay the loans. A boon for the lender has, by many accounts, … [Read more...]