student loan debt

student loan debt, Student Loans

Entering Retirement with Student Loan Debt

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An alarming number of Americans are entering retirement with student loan debt. Normally, student loan borrowers are between the ages of 18 to 39. However, a 2017 report issued by the Consumer Financial Protection Bureau, showed that people over the age of 60 are the fastest-growing sector of the U.S. population carrying student loan debt.

More than 2.8 million Americans over the age of 60 are carrying some type of student loan debt. This figure has skyrocketed from the 700,000 individuals reported in 2005. Between 2012 and 2017, the balance carried by people over the age of 60 nearly doubled from $12,100 in 2012 to $23,500 in 2017.

student loan debt, Student Loans

Keep Our Graduates Working Act Gathers Support in Florida

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A new piece of legislation has been introduced in the Florida State Senate which would protect the professional licenses of student loan borrowers from being suspended or revoked in the event they fall into default on their loan obligations.

The measure is Senate Bill 356, also known as the “Keep Our Graduates Working Act.” The bill expressly prohibits a state authority from suspending or revoking an individual’s professional license, registration, permit or certificate due to the person falling into delinquency or default on his or her student loan obligations.

Debt Relief, student loan debt, Student Loans

An Alarming Number of Student Borrowers Have Made No Progress on their Loan Balances

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A disturbing number of student loan borrowers who began their repayment plans between 2010 and 2012 have made little to no progress towards reducing the principal balance owed on their student loans. According to a recent report from Moody’s Investor Services, 49 percent of student loan borrowers whose loan repayment plans began during that time have made no progress. Even worse, many of them have seen their balances grow.

This problem could be due to several factors, including poor job prospects and low salaries in their first jobs after graduation. Depending on the degree pursued by each borrower, it can be difficult, if not impossible, to find a viable job that will allow the borrower to make appropriate payments to pay down their student loan debt.

student loan debt

Court Ruling in Favor of Discharging Student Loan Debt Gives Borrowers Hope

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Student loan forgiveness form on a desk.

When it comes to discharging debts in a bankruptcy case, student loan debt has traditionally been one of the most difficult debts to discharge. But a New York court ruling issued on January 7, 2020, has given student loan borrowers hope that change is near.

A New York judge ruled last week that the $221,385.49 in student loan debt that U.S. Navy veteran Kevin Rosenberg owed for six years was considered a dischargeable debt in his Chapter 7 bankruptcy case.

student loan debt

Tax Consequences That Come With Student Loan Forgiveness

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Receiving student loan forgiveness can be difficult to accomplish, which is why so many loan forgiveness applicants are rejected. It is also why many student loan borrowers choose to take the route of income-driven repayment plans to pay off their debt over the course of 10 to 25 years before having the remainder forgiven. However, what many of these borrowers do not realize are the tax consequences that come along with these income-based payment programs.

Under Section 61(a)(12) of the Internal Revenue Code, gross income includes revenue from the discharge of debt amounting to $600 or more in any calendar year, which means any debt that is forgiven at the end of the repayment period is considered taxable income. Depending on how high the outstanding balance is on the borrower’s debt, this taxable amount could be significant.

Debt Relief, student loan debt, Student Loans

Changes Coming in 2020 for Student Loan Borrowers

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Student loan debt has reached an all-time high in this country with an estimated $1.6 trillion owed nationwide. Student loan debt is a major issue being discussed in the 2020 presidential race, and it is also an issue being addressed in the current legislative session. The U.S. Department of Education is also considering changes for student lending. No matter how you look at it, major changes are coming in 2020 for student loan borrowers.

These changes come at the height of the student loan debt crisis. According to a recent study from Politico/Morning Consult, more than half of American consumers consider student loan debt to be a major problem facing the country. In fact, student loan debt has now surpassed both credit card and auto debt. With the average college graduate walking away with $30,000 in student loans, which is up from $10,000 in the 1990s.

student loan debt

The Student Borrower’s Bankruptcy Relief Act Would Make It Easier to Wipe Out Student Loan Debt in Bankruptcy

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Discharging student loan debt in a bankruptcy case has been an almost impossible feat for most filers. That is, unless they are able to meet the undue hardship requirements.  However, a new bill named the Student Borrower’s Relief Act of 2019 could potentially remove those roadblocks that have prevented borrowers from receiving relief in the past.

Bankruptcy offers the filer a fresh start where the individual can rid himself or herself of financial burdens that have been weighing him or her down for years. These debts normally include unsecured debt, including credit cards, personal loans or medical bills. However, if the bulk of the person’s debt is student loans, the filer would normally end up in the same situation even after the bankruptcy was over. While medical debt and credit card debt may have been discharged, the borrower would end up still carrying a large amount of debt. It is for this reason that many borrowers might avoid bankruptcy, seeing it as a no-win situation.

student loan debt

Trump Administration Takes Cancer Patient to Court Over Student Debt

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The Trump Administration is taking legal action to keep a former Argosy University student with cancer from having his federal student loans canceled after the school’s closing.  The chain of for-profit schools closed, leaving thousands of students with massive student loan debt and no degree.

The student, Robert Armour, attended Argosy University for his doctorate degree in psychology. He took a leave of absence from his program to undergo treatment for his advanced colon cancer. During this time, the for-profit school shuttered and the campus closed.

student loan debt

1,500 Former Students Will Receive Student Loan Debt Forgiveness by the Department of Education

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At least 1,500 former students from two closed for-profit schools will have their student loan debt forgiven following an investigation from the Congressional committee, as well as a class-action lawsuit.

The schools involved are the Art Institute of Colorado and the Illinois Institute of Art. These two schools followed several other for-profit college chains involved in similar scandals. The fallout began with Corinthian Colleges filing for bankruptcy in 2015 and ITT Educational Services closing one year later. Another for-profit institution, the Education Corporation of America closed in late 2018, leaving students who were attending the institutions with nowhere to go and thousands of dollars in student loan debt.

student loan debt, Student Loans

The Presidential Candidates Campaign Proposals for Student Loan Debt

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One of the major issues at the center of the 2020 Presidential Election is student loan debt, an issue that affects 44 million American borrowers. Each of the Democratic presidential candidates have his or her own proposal on how to handle this massive issue that seems to be growing every year. Some of these plans would reduce the outstanding balances borrowers hold while others call for a complete elimination of the debt.

It is said that student loan balances have surpassed credit card debt and auto debt. The average undergraduate college graduate leaves school with at least $30,000 in student loan debt, which is triple what graduates had in the 1990s. Every day, 3,000 borrowers go into default on their student loans, which is why all the candidates are calling for some level of reform.