Sader Law Firm Blog

Missouri Attorney General Shuts Down Payday Lending Operation

Posted on March 27, 2015 by The Sader Law Firm

In one of our recent blog posts, we wrote about how payday loans use ultra-high interest rates to trap borrowers in a cycle of debt. Fortunately, we have an update and good news on the situation. Two weeks ago, there were some major changes to how payday lenders could operate in the state of Missouri. The Missouri Attorney General shut down several companies issuing online payday loans from other states and ordered them to pay restitution to victims. Missouri Attorney General Chris Koster announced that an agreement had been reached with a payday loan company running eight separate online operations. The agreement forced the company to shut down all operations and provide $270,000 in restitution to borrowers for charging them excess fees. In addition to shutting down operations, all existing loan balances for Missouri borrowers will be erased if they originated from these eight online operations. According to the Attorney…
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Why Are Bankruptcy Options for Student Loans Important?

Posted on March 25, 2015 by The Sader Law Firm

In our blog post earlier this week, we mentioned that the White House has tasked administration officials with looking into bankruptcy options for private student loans. Student loans are a financial burden for most graduates, but the weight of debt is far heavier for graduates with professional degrees. By observing the student loan payments of graduates in specific professional fields, it sheds light on why allowing bankruptcy for student loans would be a very important and positive change for graduates. Bankruptcy Would Allow Some Graduates to Start Over Law school debt is the perfect example of how student loans can permanently cripple the finances of graduates. Several years ago, the New York Times covered the story of a 27-year-old law school graduate with $250,000 in student loans. Instead of making big bucks at a major law firm, the young man had graduated into a very poor job market for graduates…
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Will Student Loans Become Dischargeable Through Bankruptcy?

Posted on March 23, 2015 by The Sader Law Firm

President Barack Obama has tasked his administration to investigate options for allowing private student loan debt to be dischargeable through bankruptcy. The new policy would be a change from previous legislation passed by Congress in 2005 that prohibited private student loans from being dischargeable through bankruptcy. Advocates for the change hope that by allowing private student loans to become dischargeable as other forms of debt are, such as credit cards or mortgages, financially burdened graduates could become more independent. American college graduates owe an average of just under $30,000, with the number rising every year. Student loans are currently a permanent form of debt, as both federal and private student loans are very difficult to discharge through bankruptcy or other means. How Do Private and Federal Student Loans Differ? Recent changes to repayment options for federal student loans have made monthly payments for graduates more manageable, such as the income-based…
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