Posts Tagged: ‘student debt’

Regulators able to get $192 million in Student Loan Debt Settlement from Aequitas

September 5, 2017 Posted by kingcade

Aequitas Capital executives believed they had purchased a gold mine when they began buying student loans from Corinthian Colleges- instead, the debt proved to be the company’s downfall.  Following the for-profit college’s decent into bankruptcy and liquidation; Aequitas also collapsed amid accusations the company’s top execs were running a Ponzi scheme.

However, Aequitas continued to collect payments on the debt- until now. The U.S. Consumer Financial Protection Bureau and several state attorneys general and the Aequitas receiver reached a deal in which about 41,000 former Corinthian students whose debt is held by Aequitas could get more than half- possibly all, of their debt eliminated.

In July 2015, Aequitas became a key ally and vital source of liquidity for Corinthian by buying massive amounts of student debt. By helping finance Corinthian’s in-house private loans, Aequitas enabled Corinthian to access billions in student loan money from the U.S. government.

The bureau recently filed a lawsuit against Aequitas as part of the settlement. It claims Aequitas employees privately expressed anxiety about the huge percentage of Corinthian students who were failing to make their loan payments. “With defaults this high, how can we defend our practices,” the unidentified employee wrote in a 2011 note.

Click here to read more on this story.

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 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 www.miamibankruptcy.com.

April 13, 2016: “Million Student March” for Debt Reduction Rally

April 12, 2016 Posted by kingcade

Students are literally “taking it to the streets” this week to further promote a wave of activism against crushing student loan debt.  The students represent a massive force promoting the idea that higher education should be an investment we make as a society and warns that the $1.3 trillion in student debt is not only burdening debtors, it’s having a serious effect on the nation’s economy.

Last November, the demonstrations took over 125 campuses, as the “Million Student March” stunned the news media with an impressive, nationwide show of force.

This Wednesday, April 13, the next round of protests will command the attention of Americans engrossed in the 2016 presidential election debate about the future of our country.

The demonstrations will have four demands:

  1. Tuition-free public college education;
  2. Cancellation of all student debt;
  3. $15 minimum wage for all campus workers;
  4. Divestment of university endowments from private prisons corporations.

However, many of the 41 million people struggling to pay their student loans are the not-so-young people-currently in the workforce or looking for work- who had to take out loans to get their education and are now struggling to make their monthly loan payments while supporting their families.

Many are middle-aged parents who are struggling to pay their children’s college loans because they co-signed the loans.  There are 706,000 people on Social Security still paying off student loan debt, with 191,000 having their retirement benefits garnished to pay their student loans, according to GAO reports.

Click here to read more on this story.

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 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 www.miamibankruptcy.com.

 

Student Loans go Unpaid as Younger Workers Face Difficult Conditions in the Labor Market

August 30, 2011 Posted by kingcade

According to data from the Federal Reserve Bank of New York, 11.2% of student loans were more than 90 days past due and the rate was steadily rising. Only credit cards had a higher rate of delinquency at 12.2%. Younger workers have continued to face the most difficult conditions in the labor market. Workers between 20 and 24 years old have a 14.6% unemployment rate, compared to the national average of 9.1% recorded in July.

Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year as more students go to college and a growing number borrow money to do so. According to reports, two-thirds of bachelor’s degree recipients graduated with debt in 2008, compared with less than half in 1993.

Education policy experts expect that the mounting debt may have extensive implications for the current student borrower. Individuals finishing or leaving school with a lot of debt, may find their choices to be different than the generation before them. Things like buying a home, starting a family, a business, and saving for their own children’s college education may have to be put on hold for those with insurmountable student loan debt.

Students who borrow to attend for-profit colleges are especially likely to default. They make up about 12% of those enrolled in higher education, but almost half of those defaulting on student loans. According to the Department of Education, about a quarter of students at for-profit institutions defaulted on their student loans within three years of starting to repay them.
To read more on this topic visit:
http://blogs.wsj.com/economics/2011/08/16/more-student-loans-are-past-due/?KEYWORDS=student+loans
http://www.nytimes.com/2011/04/12/education/12college.html?_r=1

If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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, P.A. website at www.miamibankruptcy.com.