Over 200,000 student loan debt cases await decision by Department of Education

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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.  

Besty DeVos Held in Contempt

As recent as October, Betsey Devos and the DOE were held in contempt of court and fined $100,000 for “violating an order to stop collecting on the student loans owed by students of a defunct for-profit college.”

A ten page memo that circulated in the department, prepared by Diane Auer Jones, outlined a new method the department wanted to take when handling cases like Corinthian College. The method would make it harder for defrauded students to seek loan relief.  Despite concerns for the Trump administration to propose student loan relief plans as extensive as those of the Democratic 2020 candidates, the DOE actively blocks action that would allow borrowers to seek loan relief.

Existing Debt Relief Programs Have Been Halted

Programs already in place, such as the public loan forgiveness program, and the Obama-era act that grants relief to defrauded students, have been put to a screeching halt.  A further 28,000 claims filed by defrauded students, such as students from ITT Tech, await decisions on their claims. Even disabled veterans who Trump promised relief, and Pence confirmed, are still awaiting notice that their student loan debt is removed.

An estimated 227,000 cases are pending a decision for whether the borrower will receive student loan relief. Politico reported that DeVos has agreed to testify before the House Education Committee this week after the panel chairman Rep. Bobby Scott (D-Va.) threatened to subpoena her. Perhaps there will finally be a decision by Congress that can help the DOE crumbling at the seams under the leadership of DeVos.

Get Help From an Experienced Miami, FL Student Loan Debt Relief Lawyer

Florida-map-focused-on-Miami-Florida-The-Law-Office-of-Michelle-Labayen-LLC-student-loan-bankruptcy-attorneyIf you’re facing large and ever-growing student loan debt, you need help navigating bankruptcy laws. At the Law Office of Michelle Labayen, LLC, you will get the best advice from Michelle’s 16 years of experience. Get your debt issues solved so you can get a fresh start. Call Michelle now at (973) 622-1584, or contact her online.

Michelle Labayen

Michelle Labayen

Michelle Labayen has been practicing Consumer and Bankruptcy law for more than 16 years. She is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA), and the National Association of Consumer Attorneys ( NACA).

In addition, she is a Max Gardner Bootcamp graduate. Extensive experience has given Michelle a thorough understanding of bankruptcy, including:

  • Chapter 7
  • Chapter 13
  • Adversary Proceedings
  • Litigation under the Fair Credit Reporting Act
  • Litigation under the Fair Debt Collection Practice Act
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FILING CHAPTER 7 IN YOUR YOUNGER YEARS AND HOW IT’LL AFFECT YOUR FUTURE

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.

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Betsy-DeVos-Secretary-of-Education-Miami-FL-bankruptcy-attorney-Michelle-Labayen

Over 200,000 student loan debt cases await decision by Department of Education

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.

Read More »
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A memo released from inside Navient shows that borrowers are rigged into forbearance so a greater amount of interest can grow on the debt. This came out during the ongoing lawsuit between the Consumer Financial Protection Bureau (CFPB) against Navient for allegations that Navient purposely encouraged student borrowers towards options ill suited for their financial situation

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Contact Michelle, today, and get on the path to financial freedom.

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The Law Office of Michelle Labayen, LLC Can Help With The Bankruptcy Process

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.

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100 SE 2nd St Suite 2000 #A
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Miami, FL 33131
Phone: (786) 209-2327