Erasing Student Loans

Erasing Student Loans 99.9% of bankruptcy student loan debtors don’t even try to discharge their student loans because they mistakenly think that student loans cannot be discharged. Can Student Loans be Erased? YES, YES, YES. A recent study conducted by Jason Iuliano, a Harvard Law graduate and a Ph. D. candidate at Princeton revealed that 40% of filers with large student loan debt received some form of discharge from the bankruptcy court when they filed an adversary proceeding seeking a discharge of their student loans. An adversary proceeding is a lawsuit within a bankruptcy case asking the bankruptcy judge for 

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Erasing Student Loans

Stop Debt Collector Harassment You have the power to stop student loan harassment. Simply demand that the student loan collection agency stop contacting you in writing. I suggest that you write a letter and send it via fax / email and postal mail certified, with a return receipt clearly stating that you dispute the student loan debt and request that all communication stop immediately. Below is a template that works well: How to Deal With Collection Agencies http://thephiladelphiabankruptcyattorney.com/debt-collector/how-to-deal-with-collection-agencies/ If they continue to contact you, the consumer law allows you to sue them up to $1,000 for for the violation of 

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Emancipate Yourself from Mental Slavery -Discharge Your Student Loans

On May 13, 2013, Monique Evette Jones sought a discharge of her student loan obligations in her Chapter 7 bankruptcy case. Chief Judge Eric L. Frank granted a discharge of approximately $29,760.00 in student loans. The Brunner Test Section 523(a)(8) provides that student loans are dischargeable if they impose an undue hardship on the debtor and the debtor’s dependents.” 11 U.S.C. § 523(a)(8). A debtor seeking to discharge her student loans must prove that: (1) based on current income and expenses, the debtor cannot maintain a “minimal” standard of living for herself or her dependents if forced to repay the 

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Temple University Held to Violate the Fair Credit Reporting Act

Edward Seamans sued Temple University for violations of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. Section 1681s-2(b). Seamans received a Perkins student loan from Temple in 1989 and subsequently dropped out of Temple without making any payments on the Perkins student loan. In 2010, Seamans applied for financial aid from Drexel University, and Drexel told him it would not provide any financial aid until he paid the balance of his Perkins loan to Temple. On April 28, 2011, Seamans paid his Perkins loan in full to Temple. The loan was outstanding and unpaid for over twenty (20) years. Seamans act of 

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Public Service Loan Forgiveness Program

Public Service Loan Forgiveness Program. It’s a great program to promote public service in Philadelphia and it is “FREE.” The article below is a great explanation of the Public Service Loan Forgiveness Program and it contains several links at the bottom that explains how to get involved. The gist of the program is that it erases all federal loans after ten (10) years of public service, even if a borrower was only paying interest on the student loans during the ten (10) year repayment period. IMMEDIATE RELEASE: August 28, 2013 CONSUMER FINANCIAL PROTECTION BUREAU LAUNCHES TOOLKIT TO HELP TEACHERS AND 

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Heal the sick and erase your student loans.

Health care employees are eligible for a public service student loan discharge of all their federal student loans. The student loan law uses the Bureau of Labor Statistics (BLS) to determine whether a qualifying occupation is eligible for a public service discharge. The following is a list of eligible health care employees who are eligible for a public service student loan discharge:   Athletic Trainers; Attendants; Anesthesiologists; Audiologists; Cardiovascular Technologists and Technicians; Chiropractors; Dentists; Dental Assistants; Dental Hygienists; Diagnostic Medical Sonographers; Dietetic Technicians; Dietitians and Nutritionists; Emergency Medical Technicians and Paramedics; Healthcare Support Workers; Health Diagnosing and Treating Practitioners; Health 

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Public Service Loan Forgiveness

The Public Service Loan Forgiveness (PSLF) Program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. What is forgiven? The remaining interest and principal of the borrowers loans are forgiven. How many payments are required? The loan forgiveness occurs after 120 monthly payments made on or after October 1, 2007 on an eligible Federal Direct Loan. Periods of deferment and 

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Colleges Withhold Transcripts From Grads in Loan Default

By Dave Lindorff More than ten years ago, Pedro Rodriguez, a talented keyboard musician, came from his colonial homeland of Puerto Rico to go to Temple University. From a low-income family, he depended heavily on student loans to finance his four-year undergraduate study. Graduating summa cum laude with a bachelor’s of music, he went on to earn a master’s degree in music from Temple and then was hired for three years to teach there as an adjunct. By the end of college, he was $62,000 in debt but was making payments regularly until Temple laid him off, allegedly because of 

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Disability Discharge of Federal Student Loans

The borrower’s permanent and total disability is grounds for a student loan discharge. Borrowers with FFELs, Direct Loans, and Perkins loans are eligible for this discharge.[1] This includes consolidation loans. The definition of disability changed as of July 1, 2010. The new definition is less restrictive and is more favorable for borrowers because it allows discharges to be granted to borrowers who are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, can be expected to last for a continuous period of 60 

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Other Profession-Related Loan Cancellation Programs

The Department of Education administers a loan-forgiveness program for certain child care providers with FFELs or Direct Loans.[1] Under this program, borrowers who have received an associate’s or bachelor’s degree in early childhood education or child care and who are providing full-time child care services that serve certain low-income communities are eligible for forgiveness of up to 100% of their total eligible loans. Only loans made after October 7, 1998, qualify.  In January 2004, the Department of Education published the application for this cancellation program.[2] The 2008 HEA reauthorization law created a number of new job-related cancellation programs, including loan 

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