A recent Business Insider article paints an eerie picture of the stats of the student-loan bankruptcy process. Since the Biden administration has pledged to reform the process entirely, the Education Department is making the lives of borrowers difficult by shutting down requests in court. Senate Majority Leader Chuck Schumer has asked for a fair balance for everyone who declares bankruptcy. “It’s outrageous that other people get to declare bankruptcy, but students can’t,” Schumer said at a press conference in February. Aaron Ament, the president of Student Defense, is asking for new policies that put the interests of student borrowers first. “While we strongly welcome the Department’s commitment to change how it treats student loan borrowers in bankruptcy, in the meantime, it continues to oppose discharges for cancer patients, struggling grandparents and public school employees with serious medical issues,” Ament told the Insider. “We join Senator Schumer in calling for a…
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The U.S. Department of Education recently announced the pause on federal student loan payments has been extended to August 31, with plans being made to grant Individuals with federal student loans a “fresh start” on repayment. Borrowers can now have delinquencies and defaults eliminated, allowing them to reenter repayment in good standing when student loan payments resume. Student loan payments were set to resume in May before the new extension, the sixth of its kind since the start of the pandemic in March 2020. Loan relief will continue to be provided, including to those who have been defrauded by institutions and those who are eligible for the Public Service Loan Forgiveness program, the Department of Education said in a release. “This additional extension will allow borrowers to gain more financial security as the economy continues to improve and as the nation continues to recover from the COVID-19 pandemic,” U.S. Secretary…
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KSHB 41 News in Kansas City recently conducted an on-camera interview with Sader Law Firm attorney Stephan Skepnek, who provided legal insight into President Biden’s recent decision to extend the pause in payments for individuals with federal student loans. Skepnek’s student loan practice focuses on successfully solving student loan problems for clients, helping them to consolidate federal student loans and apply for Income-Based Repayment Plans, defend student loan lawsuits on private student loan debt or, when necessary, reduce or eliminate student loan debt through the bankruptcy process. According to the U.S. Department of Education, there is about $1.6 trillion in federal student loans nationwide, and borrowers can face wage garnishments, tax refund garnishments, harassment by creditors, lowered credit scores, an inability to save for retirement and difficulty obtaining financing for mortgages, car loans and businesses. While private student loans don’t offer the ability to get out of default, Skepnek believes…
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