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.