October 18, 2017

Student Loans: What if I Refuse to Pay?

Much has been said lately about student loans, the high default rate involved with these loans, and the hardship, if not downright misery, that these loans can cause.  Now a new movement is afoot by various groups to refuse to pay student loans.  Given what I perceive to be a growing storm of discontent regarding student loans, I feel that it is now the time for me to express my opinion. To … [Read more...]

What can I do about Student Loans I can’t Repay?

Many of my clients owe tens of thousands of dollars in student loans, either for their own education or their children’s, and this debt can be a real and crushing financial burden. The total outstanding student loan balance is $1.08 trillion. According to Forbes, 11.5% of it is 90+ days delinquent or in default, a number on the rise consistently since 2003. The delinquency rate on student loans … [Read more...]

Will Bankruptcy Prevent Me from Getting a Student Loan?

Clients often ask me whether filing a bankruptcy case will affect their eligibility for student loans. Generally, these are parents who plan to seek PLUS loans for their kids’ college educations, but sometimes it is the client who plans to go back to school and needs financial assistance in order to do so. The bankruptcy code is specific The Bankruptcy Code contains a specific provision … [Read more...]

How to Decide Whether Bankruptcy is Right for You

There are financial and emotional reasons to seek bankruptcy protection. Let's consider both categories. Financial questions to ask yourself Are you able to make more than a minimal payment on your debts every month? How many times in the last year have you been late or skipped a payment on a debt? What is your total debt relative to your annual income? The higher your debt to annual … [Read more...]

Senior Citizens and Student Loans

Student loans are often in the news, but a Washington Post article in April of this year examined the increasing problem of senior citizens with student loan debt. New research from the Federal Reserve Bank of New York shows that Americans 60 and older still owe about $36 billion in student loans, providing a rare window into the dynamics of student debt. More than 10 percent of those loans are … [Read more...]

Bankruptcy and Undue Hardship Repaying Student Loans

Under the current bankruptcy law, student loans are not dischargeable in a bankruptcy. Whenever I say this I'm always asked about cases of "undue hardship." Experience has taught me that if the debtor is blind, deaf, mute, and is missing all four limbs, there is a small chance that the debtor can show undue hardship and thus have his or her student loans discharged in bankruptcy. In other … [Read more...]