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.
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.
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.
If 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.
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.
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.