Sader Law Firm Blog

Report Finds More than Half of Students at For-Profit Schools Defaulted on Student Loans

Posted on October 18, 2017 by The Sader Law Firm

A new report released by the National Center for Education Statistics has discovered that 52 percent of student loan borrowers who attended for-profit schools and began repayment in 2003 have defaulted on at least one loan. By comparison, 26 percent of borrowers who attended community colleges and 17 percent who attended four-year schools have defaulted. Students who did not complete their degrees had the highest default rates. Although some for-profit schools help students obtain useful job skills, others have engaged in allegedly fraudulent business practices. However, some for-profit schools have been accused of conducting misleading advertising campaigns that promise students they will obtain high-paying jobs after graduation. These schools allegedly used falsified post-graduate employment statistics to attract more students. In reality, the programs were not accredited and many students did not find jobs after graduating. Only after throwing tens of thousands of dollars into these programs did students realize that…
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What Student Loan Repayment Options Are Available for FFEL Loans?

Posted on October 11, 2017 by The Sader Law Firm

The Department of Education recently reported that an increasing number of student loan borrowers are failing to make payments. According to the Education Department, 580,671 borrowers who entered repayment by October 1, 2013 defaulted by September 30, 2016. What is interesting is that almost half of defaulted student loans are from the Federal Family Education Loans program (also called FFEL Loans). FFEL Loans were discontinued in July 2010 by President Barack Obama. However, many Americans with federal education debt still carry this type of loan. After July 2010, federal loans were moved under the Direct Loan program. FFEL Loans do not have as many repayment options as Direct Loans. Furthermore, loan servicers are bad at informing student loan borrowers of their repayment options. If you are struggling to pay back FFEL Loans due to fees or high interest rates, we have good news. You may have access to income-driven repayment…
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Can I File for Bankruptcy on Student Loans?

Posted on October 9, 2017 by The Sader Law Firm

There is a common misconception that it is impossible to file for bankruptcy on student loans. While it may be very difficult to completely or partially discharge student loans in bankruptcy, we can assure you that it is not impossible. You should not be deterred from speaking with a bankruptcy attorney just because it is difficult to file for bankruptcy on student loans. Student loans are different than other types of debts in bankruptcy. To receive a discharge on these debts, you must show the bankruptcy court that repayment would impose an undue hardship on you or your dependents. The Bankruptcy Code does not provide a definition of undue hardship. Bankruptcy courts have offered varying definitions for this term and what it implies. Future student loan bankruptcy cases will continue to add to these definitions. Depending on where you file your case, the court will use either the Brunner test,…
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