Posts Tagged: ‘student aid bill of rights’

6 Steps to Defeat Student Loan Debt Collectors

March 27, 2015 Posted by kingcade

President Obama has promised to take action against abusive student loan debt collectors. Through his Student Aid Bill of Rights, his goal is to ensure consumer protections for student loan borrowers. More than 70 percent of college graduates have student loan debt, the second largest source of debt in America.

In the first quarter of 2015 more than twelve percent of student loan debts were in default, according to the National Student Loan Data System. Analysts predict the number of borrowers in default will continue to increase unless something is done.

Below are six steps you can take to help better manage your student loan debt:

1. Contact your lender. Lenders often sell loans, therefore several agencies may be involved in the collection of your  debt. The first thing you must do is contact your lender to make sure you have information on any and all balances you have outstanding. You will need to make a list of all of your debts along with the specific lenders and account numbers.
2. Check your credit report. Oftentimes, collection agencies will report student loans multiple times and will report a separate line per semester with different account numbers. Make sure there are no duplicate loans on your credit report.
3. Apply for the rehabilitation program. Contact the collection agency that now has your student loan and explain that you wish to apply for the loan rehabilitation program with more affordable payments. The benefits of rehabilitation include: bringing your loan out of default, repairing the damage on your credit report, and after five months in the program, you can stop any garnishments being taken out of your paycheck or tax refund.
4. Make your payments on time. If you successfully make nine payments on time, your loan will be taken out of collections. In addition, the default status will be removed.
5. Ask the collection agency for a letter to confirm that your loan has been removed from the default status. You will need to request letters from every collection agency that you have been paying.
6. Contact the three major credit bureaus. Once you receive the confirmation letters, contact all three credit bureaus – Experian, TransUnion and Equifax and forward a copy to each of them.

Click here to read more on the 6 steps to defeat student loan debt collectors.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com.

President Obama Announces Changes for Student Loan Repayment

March 16, 2015 Posted by kingcade

President Obama recently signed a “student aid bill of rights,” which outlined an assortment of policy changes to make it easier on borrowers to pay back their student loans. It will require businesses that service student loans to ensure students know how much they owe, along with providing repayment options and helping students get back in good standing who are falling behind on payment.

In addition, President Obama has asked the Treasury and Education Departments and the Consumer Financial Protection Bureau to report by October 1, 2015 on whether or not bankruptcy laws or other laws should be amended to include student loans. Lenders have always resisted loosening bankruptcy standards for student loans. However, many believe that student loans should be eligible for discharge when students are burdened by heavy debt.

Federal student loan borrowers are eligible for discharge in bankruptcy court for borrowers with permanent disabilities. However, the review will focus on students who borrower from private lenders, who do not have the same protections as federal student loan borrowers.  According to the White House, approximately 40 million Americans have student loan debt and more than 70 percent of graduates with bachelor’s degrees have an average of $28,400 in student loan debt.

Click here to read more on Obama’s plans to change student loan debt repayment.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com.