Big News: When Is A Tuition Debt A Student Loan Or A Contract?

Big News: When Is A Tuition Debt A Student Loan Or A Contract?

The difference is very important to many of us who have private loans.  Most recently, Judge Elisabeth Stong of the Eastern District of New York questioned if the Debtor had a “debt” to repay a college tuition  Harris EDNY BK 13-47320 ( which is dischargeable in bankruptcy court) or an educational loan ( which is not dischargeable in bankruptcy without an adversary proceeding).  The case involves a debtor that received employer reimbursement to take college classes at Brookline College.  The college had the client sign a Tuition Plan Payment Contract (attached).  The contract provided that the student would pay for the “processing loan” and that the student would be responsible for the payment of any balance.  But the contract does not refer or allow for any  “loan” attached to the contract.  Additionally, the only loans shown on the one page contract is for Stafford subsidized and unsubsidized  loan, no promissory loan or note to the college.  Many students sign tuition plans payments, but a contract to pay tuition is NOT the same as an educational loan.  Contractual obligations to repay a debt (tuition) may be dischargeable if it is not a student loan.

 

Senators and Action In Regards To The Student Loan Debt Issue

Senators and Action In Regards To The Student Loan Debt Issue

Although we ask our senators for help, we are still getting the rhetoric that something needs to be done, but even with the best intentions, real action is still missing. “Sen. Booker was joined by Sens. Elizabeth Warren (D-MA), Al Franken (D-MN), Jack Reed (D-RI), Richard Durbin (D-IL), Charles Schumer (D-NY), Richard Blumenthal (D-CT), ChrisContinue Reading

To Pell or Not To Pell

To Pell or Not To Pell

Upon graduation from a postsecondary education or the completion of a degree program it is pretty common to accrue a sizable amount of student loan debt in the process. However, “a Federal Pell Grant, unlike a loan, does not have to be repaid. Federal Pell Grants usually are awarded only to undergraduate students who have notContinue Reading

Senator Warren Pushing For Bankruptcy Discharge

Senator Warren Pushing For Bankruptcy Discharge

Congress is paying attention to student loan debt though—and bankruptcy is increasingly part of the debate.  There was a a hearing this morning in the Senate Banking Committee on student loans, where Senator Elizabeth Warren pushed very strongly in favor of allowing bankruptcy discharge. You can watch the full hearing at this link (Sen. Warren’sContinue Reading

Do Not Let Your Student Loans Go Into Default

Do Not Let Your Student Loans Go Into Default

  Do not let your student loan go into default. Many income repayment options are not provided to defaulted loans. A good portion of federal loans cover one or more of the income drive plans. Income-driven repayment plans are designed to make your student loan debt more manageable by reducing your monthly payment amount. LowerContinue Reading

Student Loan Help From The Government?

Student Loan Help From The Government?

The newest trending debt in America: student loans, that currently clutter most newspapers and websites.  It is an inevitable burden that college students accept as a price for their education, but is being slowly lifted.  Student loans has become a government issue in the executive and judicial branch.  President Obama has implemented a plan whereContinue Reading

Student Debt Refinancing BLOCKED

Student Debt Refinancing BLOCKED

The Democrats were proposing legislation to compliment the President’s order to allow refinancing of current student loan debt and to not wait until 2015.  The Republicans threatened to block it after the President signed the Order; and they delivered on their promise. Student Debt Refinancing has been blocked. It is additionally speculated that the Student debtContinue Reading

President Obama Signs Executive Order

President Obama Signs Executive Order

President Obama’s signed executive order will provide relief to millions with student loan debt. The order will allow repayment based on 10% of income and will start in 2014. Democrats are seeking to propose additional legislation. Stay with Student Debt Lifeline for updates.

Michelle With Congressman Payne!

Michelle With Congressman Payne!

NACBA News May 2014

NACBA News May 2014

As you know, the mission statement of NACBA is to serve the needs of consumer bankruptcy attorneys and protect the rights of consumer debtors in bankruptcy. It is also the responsibility of the organization to weigh-in on policy matters where the playing field may not be level in the area of bankruptcy law. Over theContinue Reading

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