Back in 2018 nine teachers filed a lawsuit against Navient, one of the government’s student loan servicers for misleading borrowers or blocking them from accessing a public service loan forgiveness program. According to the New York Times, out of the 146,000 applicants to the program at the time, only 3,200 saw their student loans forgiven.
Times of crisis always have a significant impact on any country’s economy. Worse, when the country is caught unprepared, and that is what we’ve witnessed around the world. COVID-19 has pushed the “superpowers” to the wall economically, and countries are struggling to remain afloat.
This week Time magazine predicted that a wave of bankruptcy filings for small businesses will ensure following the recovery of Covid-19. The government’s attempts to provide relief for small businesses have been unsuccessful to say the least since their guidelines allow for major corporations to take millions of dollars from the fund.
With cases of COVID-19 now at 586,057, where only 43,637 have recovered, while 23,604 have lost their lives, there is significant damage that’s been dealt to America’s economy. The sad fact is that we are not sure of when this pandemic will end and so the numbers may continue increasing in the foreseeable future.
President Trump signed a bill providing financial relief for Americans struggling in the wake of the coronavirus shutting down all non-essential businesses. Part of that bill granted a six-month suspension period on federal student loan payments until September 30th.
As a young person, maintaining balance in all spheres of life can be a challenge, especially financially.
The Department of Education denied 18,000 claims from students claiming wrongdoing by their school, including 7,000 claims filed by Corinthian College students. The DOE has yet to inform these students of the denial amid scrutiny against the Trump administration. This, even though courts ruled Corinthian College misled students and needed to relieve them of their student loan debt.
Ongoing controversy in the Trump Administration has found yet another problem. The Department of Education (DOE) and the Consumer Financial Protection Bureau (CFPB) are being criticized for no longer fulfilling their obligation to oversee student loan forgiveness agencies and programs.
Before Biden and Warren were at odds for the Democratic Presidential nomination, they faced off against bankruptcy protection laws. Biden successfully stripped them away right before the 2008 housing crisis.
Anyone can qualify to file for bankruptcy. There isn’t an exact amount of debt or financial difficulty required. You don’t have to show insolvency or meet a certain standard.
You should always speak with a lawyer before beginning the bankruptcy process to ensure it’s the best option for you. Michelle Labayen is a knowledgeable and experienced bankruptcy attorney with offices in New York, NY, and Newark, NJ. Florida licensed attorney Drew Gaddis is counsel and would be representing all clients in Florida.