Grief stricken after her son’s unsolved murder, a New Jersey mother faced an endless list of tasks- helping the police track down his killer, cancelling his credit cards, bank accounts, cell phone and planning a funeral.
And then there were his college student loans she co-signed.
When she called about his federal loans, an administrator offered condolences and assured her the balance would be written off. However, she received a far different response from a New Jersey state agency that had also lent her son money.
“Please accept our condolences on your loss,” explained a letter from the Higher Education Student Assistance Authority of New Jersey. “After careful consideration of the information you provided, the authority has determined that your request does not meet the threshold for loan forgiveness. Monthly bill statements will continue to be sent to you.”
These loans also carry higher interest rates than similar federal programs. Most significant, New Jersey’s loans come with a hurdle that even the most predatory for-profit players cannot avoid: the power of the state.
New Jersey can garnish wages, rescind state income tax refunds, revoke professional licenses, and even confiscate lottery winnings— all without having to get court approval.
Some consumer attorneys compare it to “state-sanctioned loan-sharking, a program that is set up so that you fail.”
Like many states, New Jersey administers a student loan program designed to help students further their education in order to be competitive in today’s workforce. Where New Jersey differs with other states is the degree of difficulty in getting out from under burdensome loan payments despite extreme poverty, illness and even death.
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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.
Related Resources: http://www.nytimes.com/2016/07/04/nyregion/in-new-jersey-student-loan-program-even-death-may-not-bring-a-reprieve.html?_r=1
