Category Archives: Student Loans

Student loan debt is a common source of financial strain for Americans. Our Kansas City bankruptcy attorney helps those struggling with student loan debt.

Education Secretary Reprimanded for Violating Student Loan Court Order

Department of Education Secretary Betsy DeVos recently made the news after a judge slammed her decision to continue collecting payments from former Corinthian Colleges students. A court order barred the Education Department from collecting loans of former students. However, the court order did not stop Betsy DeVos, whose department continued to pursue the payments. As a result, thousands of former students faced wage garnishments and tax refund seizures. Many others made unnecessary payments. Corinthian Colleges was a for-profit higher education company that shut down after allegations of fraud as well as having high default rates and generally poor outcomes for students. While not all for-profit universities are necessarily bad, Corinthian Colleges became an example of a bad actor in the industry. The Consumer Financial Protection Bureau (CFPB), a federal consumer protection agency, sued Corinthian Colleges and eventually settled for $480 million. Corinthian Colleges shut down in 2015. Although Corinthian Colleges…
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Rebuilding Credit After a Student Loan Default

Student loan defaults affect millions of borrowers. Many more borrowers may default in the near future if recent research turns out to be correct. Like with many forms of debt, your credit scores will take a hit after a student loan default. Credit scores affect your ability to qualify for loans, jobs and housing. As a result, it is important to have information that can help you rebuild your finances after defaulting on student loans.  Step 1: Get Out of Default Getting out of default will not be an option for everyone. Private lenders may not offer terms that allow borrowers to rehabilitate defaulted loans. Fortunately, federal borrowers are far, far more likely to have this option available. There are several ways to get your federal student loans out of default. The first way is to take advantage of the Department of Education’s loan rehabilitation program. You cannot enroll in…
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Jobs That Qualify for Student Loan Forgiveness

Private and federal student loan debt currently stands at $1.6 trillion. Many borrowers struggle to make payments, and some studies suggest the default rate on federal loans could hit 40 percent by 2023. However, there are many payment options that can help federal student loan borrowers avoid default. There are also programs in place that can help federal borrowers receive loan forgiveness for working in certain types of jobs. Below, we have included more information about the types of jobs that qualify for forgiveness under certain programs. Federal, State and Local Jobs If you work for a federal, state or local entity, then you may qualify for the Department of Education’s Public Service Loan Forgiveness (PSLF) Program. Examples of qualifying jobs could include working for the FBI, CIA, state legislature or as a police officer for a municipality. However, there are additional requirements that are notorious for creating confusion. For…
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