by Richard Fossey & Robert C. Cloud. The federal student loan program is in crisis. More than 40 million Americans now have outstanding student loans totaling almost $1.3 trillion and 8 million borrowers are in default (Cao, 2016). As reported recently by the Brookings Institution, in the for-profit college sector, default rates are especially high. …
In a recent post, I wrote about Alan and Catherine Murray, who won a partial discharge of their student-loan debt in a bankruptcy case decided in December 2016. Educational Credit Management (ECMC), the creditor in their case, is appealing the decision. We should all hope ECMC loses the appeal, because the Murrays are the poster …
Question: Dear Steve, I recently consolidated $78,000 of Federal Student Loans and entered into the RePAYE Plan. In the past year I got married, and understand that in RePAYE my spouse’s income must be included in the repayment calculations when I re-certify. FedLoan is currently serving my loans. When I re-certify can I switch to …
Question: Dear Steve, I have a Student Loan with Navient. I’m paying it (on time) since 2000. They were FFEL Stafford Subsidized Loans that were converted in a FFEL Consolidated Loan on 1999 with Sallie Mae. I am an employee of a not-for-profit organization that has been designated as tax-exempt by the Internal Revenue Service …
Question: Dear Steve, I consolidated my undergraduate loans into an FFEL Consolidation loan, disbursed in October 2007, owned by Nelnet. After that, I graduated, worked three years at a nonprofit, only to discover the payments I made during those years weren’t eligible for PSLF because I was paying on an FFEL loan, not a direct …
Question: Dear Steve, Took out Federally backed Student loans with Sallie Mae 20 years ago after a divorce. Had to use deferments due to job losses and health issues. Borrowed around $75,000 for three degrees. Due to the delayed interest from the deferments I now owe $126,000. I am now in retirement at 69 years …
Question: Dear Steve, I’m currently a full-time PhD student at a very reputable university who is entering what is hopefully the final year of graduate school. While I’ve been fully funded all of my years here, the stipend has never been enough to help me pay down any of my loans from previous undergraduate and …
Question: Dear Steve, Student Loan Assistance Center SLAC said that they would help me with my student loans. I currently have $307,500 worth of them right at 50 when I checked myself. I currently don’t have a source of income, and I still have two children in the home. They wanted me to come up …
Question: Dear Steve, My student loan (originally taken out for my children) is now owned by the government and administered by fedloan.gov. The loan is in my name alone — my wife is not on the loan. 1. Does filing separately exclude my wife’s income from consideration in an IBR? When I started with fedloan.gov …
Question: Dear Steve, I just got word from my employer that they will be garnishing my wages due to unpaid student loans. This is the second time this has happened to me. I went through the rehabilitation process the first time but was told at that time this you can only be eligible for that …