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ABILITY-TO-BENEFIT (ATB) CERTIFICATION
see also FALSE CERTIFICATION DISCHARGE
ability-to-benefit tests
approved tests, 10.4.2.2
common violations, 10.4.2.2
language issues, 10.4.2.3
requirement for student aid, 10.4.2.1
falsification, 10.4.2, 13.3.3.4
after July 1, 2012, 10.4.2.4
corroborating evidence, 10.4.2.6.1
defined, 10.4.2.1
fake high school diplomas, 10.4.2.5, 13.3.3.4
proving, 10.4.2.6
ABUSIVE CONDUCT
collection activities, 8.4
schools, see SCHOOL-RELATED CLAIMS AND DEFENSES
ACADEMIC COMPETITIVENESS GRANTS (ACG)
see also FEDERAL GRANTS
expiration of program, 1.4.2.3
ACADEMIC REQUIREMENTS
student loan eligibility, 1.6.1
satisfactory academic progress, 1.6.2
ACCOMMODATION PARTIES
bankruptcy chapter 13 plans, 11.9.5
co-debtor stay, 11.10
bankruptcy discharge, 11.3.2
parental plus loans, see PLUS LOANS
ACCREDITING AGENCIES
see also PROPRIETARY INSTITUTIONS
claims against, 13.7.2.2
concerns with, 13.2.4
recognized accrediting agencies, 13.7.2.2
role of, 13.2.4, 13.7.2.2
ACTIONS
see also LEGAL CLAIMS; LITIGATION AIDS
class actions, see CLASS ACTIONS
collection actions, see COLLECTION ACTIONS
damages, see DAMAGES
defenses, see DEFENSES
federal loan borrowers, by, 13.6
common law claims, 13.6.4
federal claims, 13.6.2
litigation issues, 13.7
state claims, 13.6.3
private loan lenders, against, 12.10
school-related, see SCHOOL-RELATED CLAIMS AND DEFENSES
ADMINISTRATIVE DISCHARGES
see STATUTORY DISCHARGES
ADMINISTRATIVE GARNISHMENT
see WAGE GARNISHMENTS
ADMINISTRATIVE OFFSETS
federal benefits, see FEDERAL BENEFITS OFFSETS
federal salary, see FEDERAL SALARY OFFSETS
selected regulations, Appx. B.5.1
student assistance funds, 9.7
tax refunds, see TAX REFUND OFFSETS
ADMINISTRATIVE PROCEDURES ACT
claims against DOE, 13.7.2.1
ADMINISTRATIVE REVIEW
see also APPEALS
due process challenges, 9.2.6, 9.3.5
prior to federal benefit offset, 9.4.3.1
prior to professional license suspension, 9.6
prior to tax refund offset, 9.2.5
prior to wage garnishment, 9.3.2.5, 9.3.3.2
statutory discharge denials, 10.15
ADVERSARY PROCEEDINGS (BANKRUPTCY)
dischargeability determination
chapter 13, 11.7.2
procedures, 11.7.1
state agencies, involving, 11.8
APPEALS
see also ADMINISTRATIVE REVIEW; JUDICIAL REVIEW
discharge denials, 10.15
closed schools, 10.3.6.4
disability discharges, 10.7.4.1
false certification, 10.4.7
unpaid refunds, 10.5.4
guaranty agency reviews
tax refund offsets, 9.2.7
wage garnishments, 9.3.5
school, 13.2.2.6
APPLICATION FOR STUDENT AID
consolidation loans, 7.2.4
dependent and independent students, 1.5.2
eligibility criteria, 1.5.1, 1.6
private loan disclosures, 12.4.1.4.1
procedure, 1.5.1
ARBITRATION AGREEMENTS
challenging
grounds, 13.7.4.4
initial steps, 13.7.4.3
sample pleadings, Appx. F
class-wide relief, effect on, 13.7.4.2
private loans, 13.7.4.1
proprietary schools, 13.7.4.1
ARMED FORCES SERVICE
see MILITARY PERSONNEL
ASSET SEIZURES
see SEIZURE OF PROPERTY AND ASSETS
ASSISTANCE FOR BORROWERS
consolidation loans, 7.2.4.2
Department of Education, 1.12.2
for-profit counselors, 1.12.4
forms, Appx. D
frequently asked questions, Appx. I
FSAIC, see FEDERAL STUDENT AID INFORMATION CENTER
NCLC Student Loan Borrower Assistance Project, 1.12.3, Appx. J
NSLDS, see NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
ombudsman programs
CFPB ombudsman, 1.12.1.3
FSA Ombudsman, see FEDERAL STUDENT AID OMBUDSMAN
other programs for federal loans, 1.12.1.2
private student loans, 1.12.1.3, 12.7.4
type of loan, determination, 1.9
ATB
see ABILITY-TO-BENEFIT (ATB) CERTIFICATION
ATTORNEY FEES AND COSTS
see also ATTORNEYS; COLLECTION FEES
collection actions, 11.11
private loans, 12.6.3
collection fees, inclusion, 8.3.2.1
FFEL collections, 8.3.4
post-judgment fees, 8.3.4
ATTORNEYS
see also ATTORNEY FEES AND COSTS
FDCPA, application, 8.4.3.2
public service attorneys, cancellation of loans, 10.11
Perkins loans, 10.12
BANK ACCOUNTS
deposit of student loan funds, 2.6
BANKRUPT SCHOOLS
claims against, 13.7.2.4
BANKRUPTCY DISCHARGE
availability for student loans, 11.2
chapter 13 treatment when loan not dischargeable, 11.9
co-debtor stay, 11.10
default cure, 11.9.4
discretionary income designation, 11.9.7
generally, 11.9.1
graduated payment structures, 11.9.6
preferential treatment for co-signer debts, 11.9.5
raising defenses, 11.11
separate classifications, 11.9.2, 11.9.3
co-borrowers as creditors, 11.3.3
dischargeability determination, 11.3.1, 11.7
adversary proceedings, 11.7.1, 11.7.2
change in circumstances, effect, 11.7.1
chapter 13 plan provisions, 11.7.2
older standards, use, 11.7.3
procedure, 11.7.1
state agencies, involving, 11.8
subsequent to bankruptcy proceeding, 11.7.1, 11.7.3
dischargeability exceptions, 11.2
benefit overpayments, 11.2.3.3
burden of proof, 11.3.1
co-obligors, 11.3.2, 11.3.3
debts not loans, 11.2.4.2
declaration of status, obtaining, 11.3.1
employer-sponsored programs, 11.2.4.1
pre-BAPCPA covered loans, 11.2.6
private student loans, 11.2.3.4
refinanced student loans, 11.2.5
scope of exception, 11.2.3
time-limited exceptions, 11.2.2, 11.2.7
undue hardship, 11.2.1, 11.2.3.1, 11.4
effect, 11.13
credit record, on, 8.2.3.3
filing of proceedings
automatic stay, 11.1.2
considerations, 11.1
fees, 11.1.1
forbearances, 4.4.3
tax refund offsets, effect, 9.2.9
guaranteed-loan status lost, 8.5.4.3
HEALs, 11.6
joint debtors, 11.3.2, 11.9.5
co-debtor stay, 11.3.5
means test, 11.12
old loans, 11.2.6, 11.2.7
overview, 11.1.1
partial discharges, 11.5
reopening bankruptcy cases, 11.7.1
repayment plans, effect
affordability, 11.4.2.1
good faith showing, 11.4.2.3
restrictions, 11.2.1
consolidation loans, 11.2.5
scope, 11.2.3
time-limited exceptions, 11.2.2
rights after discharge, 11.13
sample pleadings, Appx. F
seven-year rule, 11.2.7
state agency loans, 11.8
tax issues, 10.14
undue hardship, 11.4
Brunner test, 11.4.1.2, 11.4.2
chapter 13, 11.7.2
exception to nondischargeability, 11.2.1, 11.2.3.1, 11.4.1.1
“totality of circumstances” test, 11.4.1.3
BANKS
deposit accounts, see BANK ACCOUNTS
FTC Holder Rule violations, 12.9.4.5
guaranteed loans, see FFELs
private loans, see PRIVATE STUDENT LOANS
BASIC EDUCATIONAL OPPORTUNITY GRANTS (BEOG)
see PELL GRANTS
BORROWER ASSISTANCE
see ASSISTANCE FOR BORROWERS
BORROWERS
see STUDENTS
BURDEN OF PROOF
bankruptcy dischargeability, 11.3.1
financial hardship, 9.3.2.3
unemployment, 9.3.2.3
BUSINESS SCHOOLS
see VOCATIONAL INSTITUTIONS
CANCELLATION OF LOAN
see also COMPROMISES; FORBEARANCE
9/11 program, 10.13
checklist, 1.11.2
federal loans by student, time, 2.7
income-tied repayment plans
IBR, 3.3.3.8
ICR, 3.3.4.3
overview, 10.1
Perkins loans, 10.12
private loans, 12.4.1.6, 12.7.3
profession-related
generally, 10.9.1
other professions, 10.12
public service cancellation, 10.9.2
teachers, 10.10
state education laws, 13.6.3.2.4
statutory discharges, see STATUTORY DISCHARGES
tax issues, 10.14
CAREER TRAINING
see VOCATIONAL SCHOOLS
CHECKLISTS
challenging collection, 1.11.6
first steps, 1.11.1
loan cancellation, 1.11.2
postponing payment, 1.11.3
repayment options, 1.11.4
repayment strategies after default, 1.11.5
CHECKS
student loan funds, endorsement, 8.5.4.1
CHILD CARE PROVIDERS
cancellation of loans, 10.11
Perkins loans, 10.12
CITIZENSHIP REQUIREMENTS
student loan eligibility, 1.6.3
CIVIL RIGHTS CLAIMS
collection practices, 8.4.5.1
CLAIMS
see LEGAL CLAIMS
CLASS ACTIONS
advantages and disadvantages, 13.7.3
arbitration agreements, effect on, 13.7.4.2
school misconduct, 13.7.3
CLEARINGHOUSE CITATIONS
see also SARGENT SHRIVER NATIONAL CENTER ON POVERTY LAW
unreported cases, 1.2.3
CLOSED-SCHOOL DISCHARGE
see also
closure date
defined, 10.3.1
official closure date, 10.3.2
correspondence schools, 10.3.3
credit transfers, 10.3.4
effect, 10.3.5
eligible closures, 10.3.1
student notification, 10.3.6.1
eligible loans, 10.2
exceptional circumstances, 10.3.1
FISLs, 10.3.7
guaranteed-loan status lost, 8.5.4.3
obtaining, 10.3.6
appeals, 10.3.6.4, 10.15
forbearance requirements, 10.3.6.1
generally, 10.3.6.1
oral applications, 10.3.6.3
student notification, 10.3.6.1
time limits, 10.3.6.4
written application, 10.3.6.2
older FFELs, 10.3.7
overview, 10.3.1
Perkins Loans, 10.3.7
program discontinuations, 10.3.1
relationship to other discharges, 10.6
relief available, 10.3.5
revocation, 10.3.5
Stafford Loans, 10.3.7
teach-out bar, 10.3.4
tuition recovery funds, interrelationship, 13.5.2.2
CO-DEBTOR STAY
chapter 13 bankruptcy plans, 11.10
COHORT DEFAULT RATES
see also DEFAULT RATES
calculation, 6.3.1.1
problems with, 6.3.1.2
default causes, 6.1.2
default triggers, 6.2.1
FFELs, 6.3.1.1
manipulation of rates, 6.4
proprietary schools, 6.1.1, 13.3.3.1
school sanctions, 6.4, 13.2.2.3.2
skyrocketing rates, 6.1.1
COLLECTION ACTIONS
see also COLLECTION OF STUDENT LOANS
bankruptcy stay, 11.1.2
declaratory relief, 13.7.2.1, 13.7.2.4
defenses, see DEFENSES
DOE
alternative powers, 9.1
attorney fee claims, 11.11
FFELs without guaranty status, 8.5.4.3
guaranty agencies, 13.7.2.1
injunctive relief, 13.7.2.1
judgments, see JUDGMENTS
private loans, 12.6.3
defenses, generally, 12.8
school-related defenses, 12.9
statute of limitations, 12.8.3
rehabilitated loans, restrictions, 7.3.5
sample pleadings, Appx. F
school-related claims, raising
see also SCHOOL-RELATED CLAIMS AND DEFENSES
defense, as, 13.8
DOE, against, 13.7.2.1, 13.8.2
private loans, 12.9
procedural issues, 8.5.2
recoupment claims, 13.7.2.4
schools and owners, against, 13.7.2.4
statute of limitations, 8.5.3, 12.8.3
COLLECTION AGENCIES
see also COLLECTION OF STUDENT LOANS;
closed-school discharge applications, effect, 10.3.6.1
common collection abuses, 8.4.2
sample pleadings, Appx. F
complaints regarding, 8.2.1, 8.4.5.2
DOE, use by, 8.2.1, 8.4.1
directory of, Appx. H
oversight, 8.4.1.1
factors fostering abuse, 8.4.1
commission structure, 8.4.1.2
generally, 8.4.1.1
FDCPA application, 8.4.3.2, 8.4.3.5
prohibited practices, 8.4.2.2
fees, 8.3
avoiding, 8.3.3
calculation, 8.3.2
generally, 8.3.1
guaranty agencies, use by, 8.2.1, 8.4.1
HEA due diligence rules, 8.4.3.2
loan rehabilitation, payment determination, 7.3.4
standing, 8.5.2
state law, application, 8.4.4
wage garnishment process, participation, 9.3.4
COLLECTION FEES
see also COLLECTION OF STUDENT LOANS
avoiding, 8.3.3
calculation, 8.3.2
challenging in bankruptcy proceedings, 11.11
consolidation loans, 7.4, 8.3.2.2
federal regulations, selected text, Appx. B.5.4
guaranty agencies, 8.3.1
other fees and penalties, 8.3.4
overview, 8.3.1
Perkins loans, 8.3.2.3
private loans, 12.6.3
rehabilitation of loans, 7.4, 8.3.2.2
waiver, see COMPROMISES
COLLECTION LETTERS
see also COLLECTION OF STUDENT LOANS
determining sender, 8.4.3.3
COLLECTION OF STUDENT LOANS
see also
actions, see COLLECTION ACTIONS
agencies, see COLLECTION AGENCIES
bankruptcy stay, 11.1.2
checklist, 1.11.6
collector, determining, 8.2.1
credit bureau reporting, 8.2.2, 8.2.3
deceptive and abusive tactics, 8.4
common abuses, 8.4.2
complaints, 8.4.5.2
factors that foster, 8.4.1
FDCPA, application, 8.4.3, 13.6.2.8
federal claims, 8.4.5.1
sample pleadings, Appx. F
state law, application, 8.4.4
demand letters, see COLLECTION LETTERS
discharge applications, effect
closed schools, 10.3.6.1
disability discharge, 10.7.4.1
false certification, 10.4.7
unpaid refunds, 10.5.4
DOE collection and supervision, 8.2.1
federal powers
see also DEPARTMENT OF EDUCATION (DOE)
federal benefits offsets, see FEDERAL BENEFITS OFFSETS
generally, 8.1, 8.2, 9.1
selected regulations, Appx. B.5
selected statutory provisions, Appx. A.5
tax refund offsets, see TAX REFUND OFFSETS
wage garnishments, see WAGE GARNISHMENTS
fees and penalties, see COLLECTION FEES
FFELs, 8.2.2, 8.5.4.3
forbearances, effect, 4.4.1
generally, 8.1, 9.1
guaranteed-loan status lost, 8.5.4.3
guaranty agencies, 8.2.1, 8.2.2, 9.3.3
overview of process, 8.2
post-default collections, 8.2.2
rehabilitation agreements, effect, 7.3.5
repayment plans in lieu, see REPAYMENT PLANS
private student loans, 12.6.3
defenses, 12.8
evidence, 12.8.5
servicemembers, 12.8.4
statute of limitations, 12.8.3
school-held loans, 8.2.1
school-related claims, raising, 13.7
state law, application, 8.4.4
statute of limitations, 8.5.3, 9.4.3.3, 12.8.3
elimination for federal loans, 8.5.3.1, 12.8.3.1
COLLECTORS
see also COLLECTION AGENCIES; COLLECTION OF STUDENT LOANS
deceptive and abusive tactics, 8.4
complaints regarding, 8.4.5.2
FDCPA violations, 8.4.2.2
sample pleadings, Appx. F
determining collector, 8.2.1
DOE as, 8.2.1
fees, 8.3
guaranty agency as, 8.2.1, 8.2.2
state law, application, 8.4.4
wage garnishment process, participation, 9.3.4
COLLEGE WORK STUDY PROGRAM (CWS)
see also FEDERAL STUDENT ASSISTANCE
federal program, 1.4.2.1
COLLEGES
see INSTITUTIONS OF HIGHER EDUCATION
COMMON LAW CLAIMS AND DEFENSES
contract law, see CONTRACT CLAIMS AND DEFENSES
private lenders, 12.8.1, 12.8.2, 12.10
school misconduct, 13.6.4
agency theories, 13.8.5.5
contract law, 8.5.4, 13.6.4.2
fiduciary duty breach, 13.6.4.3
fraud claims, 13.6.4.1
misrepresentation, 13.8.5.5
negligence claims, 13.6.4.1
servicing abuses, 5.6.4.2
COMPLAINTS
collection abuses, 8.4.1.2, 8.4.5.1
submitting complaints, 8.4.5.2
loan servicing, 5.6.3
Ombudsman programs, see OMBUDSMAN PROGRAMS
private student loans, 12.7.4
school misconduct, 13.6.3.2.2
COMPROMISES
see also CANCELLATION OF LOAN
federal regulations, selected text, Appx. B.5.5
FFELs, 7.6.1
DOE, 7.6.2
guaranty agencies, 7.6.3, 7.6.4
Perkins Loans, 7.6.1, 7.6.4
CONSOLIDATION LOANS
see also DIRECT LOANS; FEDERAL STUDENT LOANS
advantages and disadvantages, 1.4.1.3.3, 7.4
applying for, 7.2.4
assistance, 7.2.4.2
choosing servicer, 7.2.4.2
completing process, 7.2.4.4
generally, 7.2.4.1
online system, 7.2.4.1
repayment plan selection, 7.2.4.3
availability, 1.4.1.3.1
bankruptcy discharge, 11.2.5, 11.7.1
cancellation period, 7.2.4.4
checklist, 1.11.4
collection abuses, 8.4.1.2
collection fees, 8.3.2.2
counseling, 7.2.1, 7.2.2
requirement, 7.2.4.5
default of consolidation loan, 7.2.2
defaulted loans, 7.2
deferment rights, 4.3.2, 4.3.5.1
disclosure requirements, 2.5.3
eligibility, 1.4.1.3.1, 7.2.2
fee, 7.2.4.1
FFELs, 1.4.1.3.1, 1.4.1.3.2, 7.2.2
forbearances pending, 4.4.3
generally, 7.2.1
grace period, effect on, 4.2
IBRs
see also INCOME-BASED REPAYMENT (IBR) PLANS
eligibility, 3.3.3.2, 7.2.2
forced IBRs, 7.2.3
ICRs
see also INCOME-CONTINGENT REPAYMENT (ICR) PLANS
eligibility, 3.3.4.1, 7.2.2
forced ICRs, 7.2.3
monthly payments, 3.3.4.2
interest rates, 2.3.5
joint consolidation loans, 1.4.1.3.4, 10.2, 10.7.2
origination fees, 2.4.1
overview, 1.4.1.3
PAYE eligibility, 3.3.3.2
see also PAY AS YOU EARN (PAYE) REPAYMENT PLANS
payment requirements, 7.2.3
potential problems, 7.2.4.5
pros and cons, 1.4.1.3.3
public service cancellation, 10.9.2
reconsolidation, 1.4.1.3.2, 7.2.2
refinancing through, 7.2.1
repayment options, 7.2.3, 7.2.4.3
school-related defenses, raising after, 8.5.4.4
servicer, choosing, 5.2.1.1, 7.2.4.2
statutory discharges
see also STATUTORY DISCHARGES
death discharge, 10.8
disability discharge, 10.7.2
eligibility, 10.2
telephone assistance, 7.2.4.2
CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
complaint procedures, 5.6.3
collection abuses, 8.4.5.1
private loan oversight, 12.2.1, 12.3
abusive products, 12.10
student ombudsman, 1.12.1.3, 12.7.4
servicing oversight, 5.6.2
report on servicing, 5.3
CONSUMER REPORTS
see CREDIT REPORTS
CONTRACT CLAIMS AND DEFENSES
see also SCHOOL-RELATED CLAIMS AND DEFENSES
availability, 8.5.4.1, 13.6.4.2
DOE, against, 13.7.2.1
federal preemption, 5.6.4.2
overview, 8.5.4.1
private loans, 12.8.1
direct claims, 12.10
evidence, inadequate, 12.8.5
infancy, 12.8.2
servicing abuses, 5.6.4.2
statutory discharges, interrelationship, 8.5.4.2
CONVICTS
eligibility for student aid, 1.6.5, 1.6.6
CORRECTIONS OFFICERS
deferment eligibility, 4.3.8
CORRESPONDENCE COURSES
see also DISTANCE EDUCATION PROGRAMS; PROPRIETARY INSTITUTIONS
claims regarding, see SCHOOL-RELATED CLAIMS AND DEFENSES
closed-school discharge, 10.3.3
definition, 1.7.1.4
diploma mills, 13.4.2
eligibility for student aid, 1.7.1.4, 13.2.3.2, 13.3.3.5
accredited schools, 13.2.4
FTC guides, 13.6.2.4
state regulation, Appx. E
COSIGNERS
see ACCOMMODATION PARTIES
COUNSELING
federal loans
consolidation loans, 7.2.1, 7.2.2, 7.2.4.5
loan rehabilitation, 7.2.2, 7.3.1, 7.3.4
requirements, 2.9, 7.2.4.5
for-profit counselors, 1.12.4
CREDIT REPORTS
bankruptcy discharge, effect, 8.2.3.3
defaulted loans, 8.2.3
cleaning up credit record, 8.2.3.3
consolidated loans, 7.4
expiry, 8.2.3.2
HEA requirements, 8.2.3.1
rehabilitated loans, 7.3.5, 7.4
reporting of information, 8.2.3.1
discharges
closed-school discharge, 10.3.5
false-certification discharge, 10.4.6
unpaid-refund discharge, 10.5.5
updating records, 8.2.3.3
identity theft, effect, 10.4.5
inaccurate reports, 8.2.3.3
Metro 2 reporting format, 8.2.3.1
obsolete information, 8.2.3.2, 8.2.3.3
PLUS borrowers, 1.4.1.2
rehabilitated loans
generally, 7.3.5, 7.4, 8.2.3.3
Perkins loans, 7.3.6
CREDITORS
see LENDERS
DAMAGES
school-related claims, 13.7.6
DEATH
discharges, 10.8
eligible loans, 10.2
tax issues, 10.14
forbearances, 4.4.3
DEBIT CARDS
student loan disbursements and, 2.6
DEBT COLLECTION
see COLLECTION OF STUDENT LOANS
DEBT COLLECTION ACT
selected text, Appx. A.5
DEBT COLLECTION IMPROVEMENT ACT (DCIA)
non-judicial wage garnishments, 9.3.1
statute of limitations, application to student loans, 9.4.3.3
DEBT COLLECTORS
see COLLECTION AGENCIES; COLLECTORS
DEBT RELIEF SERVICES
student loans, 1.12.4
DECEPTIVE CONDUCT
see also MISREPRESENTATIONS
collection activities, 8.4
FTC guides, 13.6.2.4
violations, 13.6.3.1.2
private lenders, 12.10
proprietary schools, 13.3
state prohibitions, 13.6.3.2.3
UDAP claims, see UDAP CLAIMS
DECLARATORY RELIEF
bankruptcy dischargeability, status, 11.3.1
school-related claims, 8.5.2, 13.7.2.1, 13.8.5.1
DEFAULT JUDGMENTS
setting aside, 8.6
DEFAULT RATES
“default management” companies, 6.4, 13.2.2.3.2
federal loans, 6.3
budget lifetime rate, 6.3.2
cohort rate, see COHORT DEFAULT RATES
cumulative lifetime rate, 6.3.2
manipulation, 6.4
private loans, 6.1.1, 12.6.1
for-profit lenders, 12.1.1
school as lender, 12.1.3
state-affiliated lenders, 12.1.2
school sanctions, 6.4, 13.2.2.3.2
DEFAULT RESOLUTION GROUP (DOE)
see also COLLECTION OF STUDENT LOANS; DEPARTMENT OF EDUCATION (DOE)
centralized collection activities, 8.2.1
collections information, 8.2.1
DEFAULTED LOANS
administrative review, see ADMINISTRATIVE REVIEW
assignment to guaranty agency, 8.2.2
bankruptcy cure, 11.9.4
bankruptcy discharge, see BANKRUPTCY DISCHARGE
causes of default, 6.1.2
cohort default rates, see COHORT DEFAULT RATES
collection procedures
see also COLLECTION OF STUDENT LOANS
defenses, see DEFENSES
federal benefits offsets, see FEDERAL BENEFITS OFFSETS
federal loans, 8.2
private loans, 12.6.3
tax refund offsets, see TAX REFUND OFFSETS
wage garnishments, see WAGE GARNISHMENTS
compromise and write-off, 7.6
consequences of loan default, 1.1, 6.1.3
federal loans, 6.1.3.1
future aid, 1.6.6
private loans, 6.1.3.2
consolidated loans, 7.2.2
consolidation of, 7.2
credit reports, 8.2.3
cleaning up credit record, 8.2.3.3
generally, 8.2.3.1
limitations, 8.2.3.2
crisis with, 1.1
deferment eligibility, 1.11.3, 4.3.2
defined, 6.2, 8.4.3.4
federal loans, 6.2.1
private loans, 6.2.2
delinquency distinguished, 4.3.2
discharges, see BANKRUPTCY DISCHARGE; STATUTORY DISCHARGES
forbearances, see FORBEARANCE
for-profit counselors, 1.12.4
private student loans, 6.2, 12.6
“prudent workout” arrangements, 12.7.2
relief for borrowers, 12.7
problem of
federal loans, 6.1
private loans, 12.6.1
professional license suspension or revocation, 9.6
rates of default, see DEFAULT RATES
reconsolidation, 1.4.1.3.2, 7.2.2
records, right to inspect, 8.2.2, 9.2.5
reduced to judgment
see also JUDGMENTS
consolidation, 7.2.2
rehabilitation, 7.3.2
satisfactory repayment, 7.5
rehabilitation, see REHABILITATION OF LOANS
renewal of eligibility
consolidation loans, 7.2.1
loan rehabilitation, 7.3.1
reasonable and affordable payments, 7.2.3, 7.3.4, 7.5
repayment strategies, 7
see also REPAYMENT OF LOANS
checklist, 1.11.5
compromise or write-off, 7.6
consolidation loans, see CONSOLIDATION LOANS
generally, 7.1
loan rehabilitation, see REHABILITATION OF LOANS
renewing eligibility, 7.5
repayment plans, see REPAYMENT PLANS
statute of limitations, 8.5.3
triggers
federal loans, 6.2.1
private loans, 6.2.2, 12.6.2
DEFENDANTS
school-related claims, 13.7.2
bankrupt or insolvent schools, 13.7.2.4
closed schools, 13.7.2.4
DOE, 13.7.2.1
private accrediting agencies, 13.7.2.2
state licensing agencies, 13.7.2.3
DEFENSES
checklist, 1.11.6
common law
contracts, 8.5.4.1, 12.8.1, 13.6.4.2
fiduciary duty, 13.6.4.3
torts, 13.6.4.1
consolidation, effect, 8.5.4.4
death of borrower, 10.8
evidence, inadequate, 12.8.5
negotiable instruments, 12.8.5.4
real party in interest, 12.8.5.3
written contract, 12.8.5.2
federal statutes, 13.6.2
infancy, 12.8.2
laches, 8.5.3.3
legal claims, raising as, 13.6.1
private loans, 12.8
procedural defenses, 8.5.2
school-related defenses, 13.8
see also SCHOOL-RELATED CLAIMS AND DEFENSES
chapter 13 bankruptcy, raising, 11.11
consolidated loans, 8.5.4.4
Direct loans, 13.8.2
FFELs post 1993, 13.8.4
FFELs pre 1994, 13.8.5
FISLs, 13.8.6
generally, 13.8.1
Perkins loans, 13.8.3
private loans, 12.9
school closure, 10.3.7
school misconduct, 10.4.1
service members, 8.5.4.5, 12.8.4
DEFENSES (cont.)
standing, 8.5.2
state law, 13.6.3
statute of limitations, 8.5.3.1, 12.8.3
statutory discharges, relationship, 8.5.4.2
tax refund offsets, 9.2.3
unpaid refunds, 10.5
wage garnishments, 9.3.2.3, 9.3.3.1
DEFERMENT
accrued interest, 4.3.1
applying for, 4.3.4
available deferments, 4.3.5.1
benefits, 4.3.1
checklist, 1.11.3
defaulted loans, 4.3.2
economic hardship deferments, 4.3.5.2
eligibility
current or delinquent loans, 4.3.2
general requirements, 4.3.3
ending deferments, 4.3.9
grounds
consolidation loans, 4.3.5
Direct loans, 4.3.5
economic hardship, 4.3.5.2
FFELs, 4.3.5, 4.3.7
generally, 4.3.5.1
military service, 4.3.5.4, 4.3.5.5
Perkins loans, 4.3.8
PLUS loans, 4.3.6
post-July 1, 1993 loans, 4.3.5, 4.3.8
pre-July 1, 1993 loans, 4.3.7
unemployment, 4.3.5.3
military deferment
active duty, 4.3.5.4
post-active duty, 4.3.5.5
parent PLUS borrower deferment, 4.3.6
private loans, 12.7.2
recertification requirements, 4.3.3
time limits, 4.3.3, 4.3.5.1
post-active duty deferment, 4.3.5.5
unemployment deferment, 4.3.5.3
unemployment deferment, 4.3.5.3
DEFINITIONS
affected individual, 7.2.3
ATB falsification, 10.4.2.1
correspondence courses, 1.7.1.4
credit hours, 1.7.1.3
debt, 8.4.3.1
debt collector, 8.4.3.1, 8.4.3.5
default, 6.2, 8.4.3.4
diploma mill, 13.4.2
disaster, 7.2.3, 7.3.3, 7.5
discretionary income, 3.3.4.2
disposable pay, 9.3.2.1
distance education, 1.7.1.4, 13.2.3.2
eligible institution, 1.7.1.2
family size, 4.3.5.2
gainful employment, 1.7.2
income, 4.3.5.2
misrepresentation, 13.2.2.2.4
national emergency, 4.3.5.4, 4.3.5.5
origination relationship, 13.8.5.2
private education loan, 12.4.1.2
private educational lender, 12.4.1.2
qualified education loan, 11.2.5
teach-out agreement, 10.3.4
total and permanent disability, 10.7.3
DELINQUENT LOANS
default distinguished, 4.3.2
deferment eligibility, 4.3.2
late charges, 2.4.2
DEMAND LETTERS
see COLLECTION LETTERS
DEPARTMENT OF EDUCATION (DOE)
see also FEDERAL STUDENT ASSISTANCE
assistance within, 1.12.2
forms, Appx. D
policy guidance letters, Appx. C
central database, see NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
claims against, 13.7.2.1
tort claims, 13.6.2.5
collection agencies, use, 8.2.1, 8.4.1, 9.3.4
commission system, 8.4.1.2
complaints, 8.4.5.2
oversight, 8.4.1.1
collection procedures, 8.2
complaints regarding, 8.2.1, 8.4.5.2
Department-held loans, 8.2.1, 9.1
FDCPA application, 8.4.3.3
federal benefits offsets, see FEDERAL BENEFITS OFFSETS
federal salary offsets, 9.5
fees, 8.3.1, 8.3.2
hearings, see ADMINISTRATIVE REVIEW
injunctive relief, 13.7.2.1
non-Department loans, 8.2.1
role of department, 8.2.1
seizure of student assistance funds, 9.7
selected regulations, Appx. B.5
selected statutory provisions, Appx. A.5
supervisory role, 8.2.1
tax refund offsets, see TAX REFUND OFFSETS
wage garnishments, see WAGE GARNISHMENTS
complaint procedures, 5.6.3
declaratory relief against, 13.7.2.1
Default Resolution Group, see DEFAULT RESOLUTION GROUP (DOE)
defaulted loans
administrative review, see ADMINISTRATIVE REVIEW
collection fees, 8.3.1, 8.3.2
collection procedures, 8.2
other fees and penalties, 8.3.4
reporting to credit bureaus, 8.2.3
direct loans from, see DIRECT LOANS
discharge denials, judicial review, 10.15
enforcement authority, 13.2.5
financial assistance to students, see FEDERAL STUDENT ASSISTANCE
forms, Appx. D
guaranty agencies, supervision, 8.2.1
injunctive relief against, 13.7.2.1
investigatory files, obtaining, 10.4.2.6.2
Ombudsman, see FEDERAL STUDENT AID OMBUDSMAN
oversight of schools, 13.2
gaps, 13.2.5
inadequate, claims regarding, 13.6.2.5
policy guidance materials, Appx. C
resources, 1.12.2
school misconduct, liability for
claims regarding, 13.7.2.1
Direct Loans, 13.8.2
FFELs, 8.5.4.3, 13.8.5
servicer oversight, 5.6.2
complaint procedures, 5.6.3
student guides, 1.12.2
tort claims against, 13.6.2.5
website, 1.12.2
see also WEB RESOURCES
closed-school list, 10.3.2
default rates available on, 6.1.1
defaulted loans, information on, 8.2.1
forms available on, Appx. D
policy guidance letters available on, Appx. C
DIPLOMA MILLS
concerns, generally, 13.4.2
fake high school diplomas, 10.4.2.5, 13.3.3.4, 13.4.2
DIRECT CONSOLIDATION LOANS
see CONSOLIDATION LOANS
DIRECT LOANS
see also FEDERAL STUDENT LOANS
bankruptcy discharge, 11.2.3.1
cancellation by DOE, see CANCELLATION OF LOAN
cancellation by student, 2.7
cohort default rate, 6.3.1.1
collections, see COLLECTION OF STUDENT LOANS
consolidation loans, see CONSOLIDATION LOANS
counseling requirements, 2.9
default triggers, 6.2.1
defaulted loans
see also COLLECTION OF STUDENT LOANS
collection costs, 8.3.1
collection information, 8.2.1
collection regulations, 8.2.2
defined, 6.2.1
school-related defenses, raising, 13.8.2
deferment rights
see also DEFERMENT
cancelling deferment, 4.3.9
economic deferments, 4.3.5.2
grounds, 4.3.5
military deferments, 4.3.5.4, 4.3.5.5
time limits, 4.3.3
unemployment deferments, 4.3.5.3
disbursement of funds, 2.6
disclosure requirements, 2.5
forbearances, 4.4.3
FTC Holder Notice, application, 13.8.1
history of program, 1.3
interest rates, 2.3.1
master promissory note, see MASTER PROMISSORY NOTE
origination fees, 2.4.1
PLUS Loans, see PLUS LOANS
rehabilitation of loan, 7.3
repayment after withdrawal, 2.7
repayment plans, 3.1
alternative plans, 3.3.6
IBR, 3.3.3
ICR, 3.3.4
PAYE, 3.3.3
rehabilitation, 7.3.3, 7.3.4
school-related defenses, raising, 13.8.2
servicing, 5.2.1
see also SERVICING OF LOANS
borrower protections, 5.5.2
borrower relief, 5.6
choice of servicer, 5.2.1.1
complaint procedures, 5.6.3
contract system, 5.2.1.1
due diligence, 5.4.1
performance metrics, 5.2.1.2
public enforcement, 5.6.2
Stafford Loans, see STAFFORD LOANS (GSLs)
statutory discharges
see also STATUTORY DISCHARGES
death discharge, 10.8
disability discharge, 10.7.2
eligibility, 10.2
false-certification discharge, 10.4.1
unpaid-refund discharge, 10.5
statutory provisions, selected text, Appx. A.1
regulations, Appx. B.1
switch to, 1.3
DISABILITY DISCHARGE
see also
allowable earnings, 10.7.5.1, 10.7.6
appeals, 10.7.4.1
application process, 10.7.4
generally, 10.7.4.1
veterans, 10.7.4.2
denial, grounds for, 10.7.4.1
eligible loans, 10.2, 10.7.2
final discharge, effect, 10.7.7
new loans, restrictions, 10.7.5.1, 10.7.7
overview, 10.7.1
paid-in-full loans, 10.3.5
physician certification, 10.7.4.1
potential roadblocks, 10.7.8
reinstatement of loan, 10.7.5
generally, 10.7.5.1
notice of reinstatement, 10.7.5.1, 10.7.5.2
servicing center, 10.7.8
social security disability recipients, 10.7.4.1
subsequent disqualification, 10.7.5
tax issues, 10.14
total and permanent disability, 10.7.3
allowable work, 10.7.6
proving, 10.7.4.1
veterans, 10.7.4.2
DISABLED PERSONS
benefits offsets, 9.4.1
deferment eligibility
Perkins Loans, 4.3.8
pre-July 1, 1993 FFELs, 4.3.7
rehabilitation training program, 4.3.5.1, 4.3.7
discharges, see DISABILITY DISCHARGE
forbearances, 4.4.3
total and permanent disability, defined, 10.7.3
veterans, 10.7.4.2
DISASTER SITUATIONS
9/11, 10.13
consolidation loans, 7.2.3
institutional eligibility, 1.7.1.4
rehabilitation of loans, 7.3.3, 7.5
special forbearance guidelines, 4.4.4
DISCHARGES
see also CANCELLATION OF LOAN
bankruptcy, see BANKRUPTCY DISCHARGE
statutory discharges, see STATUTORY DISCHARGES
DISCLOSURES
consumer information requirements, 1.7.2, 13.6.3.2.3
manipulation of data, 13.3.3.3
federal loans, 2.5
consolidation loans, 2.5.3
gainful employment, 1.7.2, 13.2.2.5
generally, 2.5.1
master promissory note, 2.8
requirements, 1.7.2, 2.5.2
HEA, 2.5.1, 12.4.2
private loans, 12.4, 12.4.1a
HEA, 12.4.2
TILA, 12.4.1
state requirements, 13.6.3.2.3
DISCOVERY
sample discoveries, Appx. F
DISCRIMINATION
bankruptcy discharge, prohibition, 11.13
ECOA claims, 13.6.2.6
private loans, 12.10
DISTANCE EDUCATION PROGRAMS
see also PROPRIETARY INSTITUTIONS
abuses, 13.3.3.5
closed-school discharge, 10.3.1
correspondence schools distinguished, 1.7.1.4
definition, 1.7.1.4
eligibility for student aid, 1.7.1.4, 13.2.3.2, 13.3.3.5
accredited schools, 13.2.4
FTC guides, 13.6.2.4
location, deemed, 10.3.1
state oversight, 13.2.3.2
DOE
see DEPARTMENT OF EDUCATION (DOE)
DRUG CONVICTIONS
eligibility for student aid, 1.6.4
DUE PROCESS CHALLENGES
administrative review process, 9.2.6, 9.3.5
collection practices, 8.4.5.1
federal benefits offsets, 9.4.3.4
statute of limitations elimination, 8.5.3.1
tax refund offsets, 9.2.6
wage garnishments, 9.3.5
EARNED INCOME TAX CREDITS (EITC)
offsets, avoiding, 9.2.8
bankruptcy filing, 9.2.9
ECONOMIC HARDSHIP
see also UNDUE HARDSHIP;
bankruptcy discharge, 11.4
health-related impairments, 11.4.2.2.4
“minimal” standard of living, 11.4.2.1.3
deferment eligibility, 4.3.5.2
Perkins Loans, 4.3.8
post-July 1, 1993 loans, 4.3.5.1, 4.3.5.2
pre-July 1, 1993 loans, 4.3.7
time limits, 4.3.3
forbearances, 4.4.4
Perkins Loans, 4.4.5
IBR repayment alternative, 4.3.5.2
offset reduction, 9.4.3.2
sample pleadings, Appx. F
wage garnishment defense, 9.3.2.3, 9.3.3.1
EDUCATION LOANS
see STUDENT LOANS
EDUCATIONAL BENEFITS
see FEDERAL STUDENT ASSISTANCE
EDUCATIONAL INSTITUTIONS
see SCHOOLS
EDUCATIONAL MALPRACTICE
claims, 13.6.4.2
EMPLOYER-SPONSORED PROGRAMS
debts related to, bankruptcy discharge, 11.2.4.1
EMPLOYMENT PROSPECTS
gainful employment, 1.7.2, 13.2.2.5
manipulation of data, 13.3.3.3
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
claims under, 13.6.2.6
private loan violations, 12.10
EVIDENCE
private loan collections, inadequate, 12.8.5
generally, 12.8.5.1
negotiable instruments, 12.8.5.4
real party in interest, 12.8.5.3
written contract, proof, 12.8.5.2
school malfeasance, 13.7.5
ATB falsification, 10.4.2.6
EXPECTED FAMILY CONTRIBUTION (EFC)
federal student loans, 1.5.1
FAIR CREDIT REPORTING ACT (FCRA)
student loans, application, 13.6.2.9
FAIR DEBT COLLECTION PRACTICES ACT (FDCPA)
HEA, conflicts, 8.4.3.2
illegal activities under, 8.4.2.2
student loan collections, application, 8.4.3, 13.6.2.8
private loans, 12.2.1, 12.5.1
FALSE CERTIFICATION DISCHARGE
see also
ability-to-benefit (ATB) falsification, 10.4.2
common violations, 10.4.2.2
defined, 10.4.2.1
fake high school diplomas, 10.4.2.5
group discharges, 10.4.2.7
language issues, 10.4.2.3
proving, 10.4.2.6
administrative review, 10.15
applying for, 10.4.7
contract defenses, interrelationship, 8.5.4.1, 8.5.4.2
denials based on lack of corroborating evidence, challenging, 10.4.2.6.1
disqualifying status of student, 10.4.3
effect, 10.4.6
eligible loans, 10.2, 10.4.2.1, 10.4.2.4
employment eligibility, students lacking, 10.4.3
forgery, 10.4.4
generally, 10.4.1
guaranteed-loan status lost, 8.5.4.3
identity theft, 10.4.5
proving falsification, 10.4.2.6
corroborating evidence, 10.4.2.6.1
investigatory files, 10.4.2.6.2
other evidence of ATB fraud, 10.4.2.6.6
school files, 10.4.2.6.3
specific schools, 10.4.2.6.5
testing company information, 10.4.2.6.4
relationship to other discharges, 10.6
relief available, 10.4.6
revocation, 10.4.6
tuition recovery funds, interrelationship, 13.5.2.2
FALSE CLAIMS ACT
claims under, 13.6.2.3
FEDERAL ASSISTANCE
see FEDERAL STUDENT ASSISTANCE
FEDERAL BENEFITS OFFSETS
amount of offset, 9.4.2
challenging, 9.4.3, 13.7.2.1
due process challenges, 9.4.3.4
collection abuses, 8.4.2.1
collection fees, 8.3.3
exempt benefits, 9.4.1
hardship reductions, 9.4.3.2
hearing rights, 9.4.3.1
notice, 9.4.3.1
overview, 9.4.1
state payments and debts, 9.4.1
statute of limitations, 8.5.3.1, 9.4.3.3
statutory provisions, selected text, Appx. A.5
regulations, Appx. B.5.1
student loan funds, 9.4.1, 9.7
FEDERAL DIRECT LOANS
see DIRECT LOANS
FEDERAL FAMILY EDUCATION LOANS (FFELs)
see FFELs
FEDERAL GRANTS
see also FEDERAL STUDENT ASSISTANCE
Academic Competitiveness Grants, 1.4.2.3
Basic Educational Opportunity Grants (BEOG), see PELL GRANTS
discharge of prior loans, effect
bankruptcy discharge, 11.13
closed-school discharge, 10.3.5
false-certification discharge, 10.4.6
finder-fee companies, scams, 13.4.1
FSEOG, see SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (FSEOG)
garnishment of funds, 1.4.3, 9.7
Iraq and Afghanistan Service Grant, 1.4.2.3
National Science and Mathematics Access to Retain Talent Grants, 1.4.2.3
overpayments, 1.4.2.2.2, 1.6.6
bankruptcy discharge, 11.2.3.3
overview of federal programs, 1.4.2
Pell Grants, see PELL GRANTS
repayment unnecessary, 1.4.2.1
return of funds upon withdrawal, 2.7
seizure of funds, 1.4.3, 9.7
TEACH Grants, 1.4.2.3
FEDERAL GUARANTEED STUDENT LOAN PROGRAM (GSLs)
see STAFFORD LOANS (GSLs)
FEDERAL INSURED STUDENT LOAN PROGRAM (FISLs)
see also FFELs
closed-school discharge, 10.3.7
consolidation, 7.2.2
history of, 1.3
laches doctrine, application, 8.5.3.3.3
older loans, 1.4.1.5
school-related defenses, raising, 13.8.6
FEDERAL LOANS
see FEDERAL STUDENT LOANS
FEDERAL PREEMPTION
common law claims, 13.6.4.1
agency theories, 13.8.5.5
contract claims, 5.6.4.2
debt collection, 5.6.4.3, 8.4.4
disclosure requirements, 2.5.1, 5.6.4.1
fraud claims, 13.6.4.1
HEA, 13.6.3.4
conflict preemption, 13.6.3.4.4
direct conflict, 13.6.3.4.4
express preemption, 13.6.3.4.3
field preemption, 13.6.3.4.2
obstacle preemption, 13.6.3.4.4
issues re, sample pleadings, Appx. F
lender liability statutes, 13.8.5.4
National Bank Act, 12.9.4.5
respondeat superior claims, 13.8.5.5
servicing abuses, 5.6.4.1, 5.6.4.2
UDAP and other state claims, 5.6.4.2
usury laws, 2.3.1
FEDERAL SALARY OFFSETS
overview, 9.5
FEDERAL STUDENT AID INFORMATION CENTER
assistance, 1.9
collections information, 8.2.1
student loan guides available from, 1.12.2
FEDERAL STUDENT AID OMBUDSMAN
contacting, 1.12.1.1
collection abuse complaints, 8.2.1, 8.4.5.2
function, 1.12.1.1
FEDERAL STUDENT ASSISTANCE
applying for, see APPLICATION FOR STUDENT AID
College Work Study program, 1.4.2.1
frequently asked questions, Appx. I
grants, see FEDERAL GRANTS
high school diploma requirement, 10.4.2.5, 13.3.3.4
loans, see FEDERAL STUDENT LOANS
oversight, 13.2
regulations, selected text, Appx. B.4.2
renewing eligibility, 7.5
types of assistance, 1.4
grants, 1.4.2
loans, 1.4.1
web resources, Appx. K
see also WEB RESOURCES
FEDERAL STUDENT LOAN OMBUDSMAN
see FEDERAL STUDENT AID OMBUDSMAN
FEDERAL STUDENT LOANS
see also FEDERAL STUDENT ASSISTANCE; STUDENT LOANS
administration by guaranty agencies, 1.3
administrative capability of school, 13.2.2.3
administrative discretion, 2.2.5
admissions standards, 1.7.1.5
applying for, 1.5
see also APPLICATION FOR STUDENT AID
basic terms and conditions, 2
cancellations, 2.7
disbursement of funds, 2.6
disclosure requirements, 2.5
interest rates, 2.3
loan fees, 2.4
loan limits, 2.2
master promissory notes, 2.8
return of funds, 2.7
borrower assistance, see ASSISTANCE FOR BORROWERS
cancellation rights, 2.7
central database, see NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
collection procedures, see COLLECTION OF STUDENT LOANS
consolidation loans, see CONSOLIDATION LOANS
consumer information requirements, 1.7.2
correspondence courses, 1.7.1.4
counseling requirements, 2.9
default consequences, 6.1.3.1
default rates, 6.3
budget lifetime rate, 6.3.2
cohort rate, see COHORT DEFAULT RATES
cumulative lifetime rate, 6.3.2
default triggers, 6.2.1
defaulted loans, see DEFAULTED LOANS
deferments, see DEFERMENT
delinquent loans, see DELINQUENT LOANS
determining loan type, 1.9
direct loans
consolidation loans, see CONSOLIDATION LOANS
DOE, see DIRECT LOANS
schools, see PERKINS LOANS
disbursement of funds, 2.6
disclosure requirements, 1.7.2, 2.5
state requirements, 13.6.3.2.3
distance education programs, 1.7.1.4, 13.2.3.2, 13.3.3.5
eligibility criteria
high school diploma, 10.4.2.5, 13.3.3.4
individual eligibility, 1.6
institutional eligibility, 1.7.1, 13.2, Appx. B.4.1
expected family contribution (EFC), 1.5.1
Federal Direct Loans, see DIRECT LOANS
Federal Family Education Loans (FFELs), see FFELs
financial responsibility of school, 13.2.2.4
FISLs, see FEDERAL INSURED STUDENT LOAN PROGRAM (FISLs)
forbearances, see FORBEARANCE
forms, Appx. D
frequently asked questions, Appx. I
gainful employment after, 13.2.2.5
garnishment of funds, 1.4.3, 9.7
GSLs, see STAFFORD LOANS (GSLs)
guaranty agencies, see GUARANTY AGENCIES
history of, 1.3
interest rates, 2.3
job placement and completion statistics, 13.3.3.3
loan fees, 2.4
late charges, 2.4.2
origination fees, 2.4.1
loan limits, 2.2
master promissory note, see MASTER PROMISSORY NOTE
NSLDS listing, 12.2.2
older loans, 1.4.1.5
overview, 1.4.1, 2.1
Perkins Loans, see PERKINS LOANS
PLUS Loans, see PLUS LOANS
private loans compared, 1.8, 12.2.1
distinguishing, 1.9, 12.2.2
Program Participation Agreements, see PROGRAM PARTICIPATION AGREEMENTS
renewing eligibility, 7.5
consolidation, 7.2.1
rehabilitation, 7.3.1
repayment, see REPAYMENT OF LOANS
return of funds, 2.7
seizure of funds, 1.4.3, 9.7
servicing, see SERVICING OF LOANS
SLSs, see SUPPLEMENTAL LOANS FOR STUDENTS (SLSs)
Stafford Loans, see STAFFORD LOANS (GSLs)
statutory provisions, selected text, Appx. A
regulations, Appx. B
types of loans, 1.4.1
web resources, Appx. K
see also WEB RESOURCES
FEDERAL TRADE COMMISSION (FTC)
Guides for Private Vocational and Distance Education Schools, 13.6.2.4
violations, 13.6.3.1.2
Holder Rule, see HOLDER RULE (FTC)
FEES AND PENALTIES
collection fees, see COLLECTION FEES
consolidation loans, 7.2.4.1
late fees, see LATE CHARGES
origination fees, see ORIGINATION FEES
other fees and penalties, DOE collections, 8.3.4
rehabilitated loans, 7.3.5
tax refund offsets, 9.2.8
FFELs
see also FEDERAL STUDENT LOANS
cohort default rate, 6.3.1.1
compromise or write-off, 7.6.1
DOE, 7.6.2
guaranty agencies, 7.6.3, 7.6.4
consolidation, 1.4.1.3.1, 1.4.1.3.2, 7.2.2
default triggers, 6.2.1
defaulted loans
collection costs, 8.3.1
collection procedures, 8.2.1, 8.2.2
defined, 6.2.1
school-related defenses, raising, 8.5.4.3, 13.8.4, 13.8.5
deferment rights
see also DEFERMENT
cancelling deferments, 4.3.9
economic hardship, 4.3.5.2
military deferments, 4.3.5.4, 4.3.5.5
post-July 1, 1993, 4.3.5
pre-July 1, 1993, 4.3.7
time limits, 4.3.3
unemployment deferments, 4.3.2, 4.3.5.3
disclosure requirements, 2.5.2
elimination of, 1.3
FFELs (cont.)
forbearances, 4.4.2
discretion, 4.4.3
FTC Holder Notice, 13.8.4.1, 13.8.5.1, 13.8.5.3
guaranteed status lost, effect, 8.5.4.3
history of program, 1.3
interest rates, 2.3.1
origination fees, 2.4.1
profession-related cancellations
child care workers, 10.11
teachers, 10.10
referral relationship, 13.8.4.1
rehabilitation of loan, 7.3
sale after, 7.3.5
repayment plans, 3.1
IBR, 3.3.3
ISR, 3.3.5
rehabilitation, 7.3.3, 7.3.4
school-related defenses, raising
newer loans, 13.8.4
older loans, 13.8.5
when guaranteed status lost, 8.5.4.3
servicing, 5.2.2
see also SERVICING OF LOANS
borrower protections, 5.5.2
complaint procedures, 5.6.3
due diligence, 5.4.1
public enforcement, 5.6.2
SLSs, see SUPPLEMENTAL LOANS FOR STUDENTS (SLSs)
Stafford Loans, see STAFFORD LOANS (GSLs)
statutory discharges
see also STATUTORY DISCHARGES
disability discharge, 10.7.2
eligibility, 10.2
false-certification discharge, 10.4.1
statutory provisions, selected text, Appx. A.2
regulations, Appx. B.2
FINANCIAL AID ADMINISTRATORS
professional judgment, 2.2.5
FINANCIAL HARDSHIP
see ECONOMIC HARDSHIP
FORBEARANCE
administrative forbearances, 4.4.3, 4.4.4
PLUS loans, 4.3.6
applying for, 4.4.2
checklist, 1.11.3
defaulted loans, 4.4.1, 4.4.4
prior to lender submitting claim, 4.4.2
discretionary forbearances, 4.4.3
effect, 4.4.1
generally, 4.4.1
mandatory forbearances, 4.4.4
military service, 4.3.5.5, 4.4.4
pending discharge
closed-school discharge, 10.3.6.1
pending disability discharge, 10.7.4.1
Perkins Loans, 4.4.5
private loans, 12.7.2
verbal forbearances, 4.4.2
FORGERY
see also IDENTITY THEFT
defense to loan enforceability, 8.5.4.1
false-certification discharge, 10.4.4
FORGIVENESS OF LOANS
see CANCELLATION OF LOAN
FORMS
student assistance forms, Appx. D
FOR-PROFIT INSTITUTIONS
see PROPRIETARY INSTITUTIONS
FRAUD
see also FALSE CERTIFICATION DISCHARGE
claims re
see also SCHOOL-RELATED CLAIMS AND DEFENSES
accrediting agencies, 13.7.2.2
common law claims, 13.6.4.1
False Claims Act, 13.6.2.3
federal claims, 13.6.2
state claims, 13.6.3
defense to loan enforceability, 8.5.4.1
proprietary schools, 13.3.1
scholarship scams, 13.4.1
FREEDOM OF INFORMATION ACT REQUESTS
DOE investigatory files, 10.4.2.6.2
sample requests, Appx. F
FTC
see FEDERAL TRADE COMMISSION (FTC)
GAINFUL EMPLOYMENT
disclosure requirements, 1.7.2, 13.2.2.5
federal loan eligibility, 1.7.2, 13.2.2.5
GARNISHMENTS
student assistance funds, 1.4.3, 9.7
wages, see WAGE GARNISHMENTS
GOVERNMENT LOANS
see FEDERAL STUDENT LOANS
GRACE PERIODS
repayment, prior to, 4.2
GRADUATE STUDENTS
see also STUDENTS
deferment eligibility, 4.3.5.1
Perkins Loans, 1.4.1.4
PLUS loans, 1.4.1.2
Stafford loans, 1.4.1.1, 2.2.2
GRANTS
see FEDERAL GRANTS; SCHOLARSHIPS
GUARANTEED STUDENT LOANS (GSLs)
see STAFFORD LOANS (GSLs)
GUARANTY AGENCIES
bankruptcy dischargeability
contesting, 11.7.1
sovereign immunity issues, 11.8
collection abuses, complaining to, 8.2.1, 8.4.5.2
collection actions by
injunctive relief, 13.7.2.1
joinder of school-related claims, 8.5.2
collection agencies, use, 8.2.1
complaints, 8.4.5.2
factors fostering abuse, 8.4.1
collection compensation, 8.4.1.2
collection fees, 8.3.1, 8.3.2
collection procedures
FDCPA, application, 8.4.3.5
generally, 8.2.1
post-default, 8.2.2
compromise and write-offs, 7.6.3
procedures, 7.6.4
defaulted loans
administrative review, 9.2.5
collection procedures, 8.2.1, 8.2.2
reporting to credit bureaus, 8.2.2, 8.2.3
directory of, Appx. G
discharge requests, responding to
closed schools, 10.3.6.4
false certification, 10.4.7
forbearances, granting, 4.4.1
function, 1.3
judicial review of actions, 9.3.3.1, 9.3.5, 10.15
ombudsman programs, 1.12.1.2
school misconduct, liability for, 13.8.5
servicing of loans, see SERVICING OF LOANS
supervision by DOE, 8.2.1
tax refund offsets, 9.2.1
wage garnishments, 9.3.3
HARDSHIP DEFENSE
see ECONOMIC HARDSHIP
HEALTH CARE WORKERS
Perkins loan cancellation, 10.12
public service cancellation, 10.9.2
HEALTH EDUCATION ASSISTANCE LOANS (HEALs)
bankruptcy dischargeability, 11.6
consolidation, 7.2.2
disability discharge, 10.7.2
discontinuation, 1.4.1.5
HEARINGS
defaulted loans, see ADMINISTRATIVE REVIEW
garnishment hearings
DCIA garnishment, 9.3.2.5
guaranty agency garnishment, 9.3.3.2, 9.3.4
HIGHER EDUCATION ACT (HEA)
claims under, 13.6.2.1
disclosure requirements
federal loans, 2.5
private loans, 12.4.2
state law preemption, 5.6.4.1
FDCPA, conflicts, 8.4.3.2
history of, 1.3
misrepresentation regulations, 13.2.2.2.4
violations, 13.6.2.1
preemption of state law, 13.6.3.4
common law claims, 13.6.4.1
conflict preemption, 13.6.3.4.4
debt collection laws, 8.4.4
direct conflict, 13.6.3.4.4
express preemption, 13.6.3.4.3
field preemption, 13.6.3.4.2
obstacle preemption, 13.6.3.4.4
servicing abuses, 5.6.4.1
private loans, application, 12.2.1, 12.4.2
servicing requirements, 5.5.2
private enforcement, 5.6.4.1
HIGHER EDUCATION INSTITUTIONS
see INSTITUTIONS OF HIGHER EDUCATION
HOLDER RULE (FTC)
FFELs, application, 13.8.4.1, 13.8.5.1, 13.8.5.3
private loans, application, 12.9.2, 13.8.1
violations, remedies, 12.9, 13.8.5.3
agreement contradicting notice, 12.9.3
bank violations, 12.9.4.5
omission of notice, 12.9.4
IDENTITY THEFT
see also FORGERY
defense to loan enforceability, 8.5.4.1
false-certification discharge, 9.3.4
forbearances, 4.4.3
INCARCERATED STUDENTS
eligibility for assistance, 1.6.5
INCOME-BASED REPAYMENT (IBR) PLANS
see also INCOME-DRIVEN REPAYMENT PLANS; REPAYMENT PLANS
alternative to economic hardship deferment, 4.3.5.2
annual review, 3.3.3.6.1
applying for, 3.3.3.4
bankruptcy alternative, problems as, 11.4.2.3
consolidation loans, 7.2.2
forced IBR, 7.2.3
eligibility, 3.3.3.2, 11.4.2.3.6, 11.4.2.3.7
history of, 3.3.2, 3.3.3.1
income documentation
missed or late, 3.3.3.6.2
interest treatment, 3.3.3.5
leaving plan, 3.3.3.7
loan forgiveness, 3.3.3.8
tax consequences, 11.4.2.3.5
PAYE differences, 3.3.3.9
payment allocation, 3.3.3.5, 3.5
repayment formula, 3.3.3.3
INCOME-CONTINGENT REPAYMENT (ICR) PLANS
see also INCOME-DRIVEN REPAYMENT PLANS; REPAYMENT PLANS
bankruptcy alternative, 11.4.2.3
consolidation loans, 7.2.2
forced ICR, 7.2.3
eligibility, 3.3.4.1
history of, 3.3.2
loan forgiveness, 3.3.4.3
monthly payments, 3.3.4.2
INCOME-DRIVEN REPAYMENT PLANS
alternative plans, 3.3.6
annual review, 3.3.3.6.1
bankruptcy alternative, problems with, 11.4.2.3
history of, 3.3.2
IBRs, see INCOME-BASED REPAYMENT (IBR) PLANS
ICRs, see INCOME-CONTINGENT REPAYMENT (ICR) PLANS
IRSs, see INCOME-SENSITIVE REPAYMENT (ISR) PLANS
overview, 3.3.1
PAYE, see PAY AS YOU EARN (PAYE) REPAYMENT PLANS
payment allocation, 3.5
INCOME-SENSITIVE REPAYMENT (ISR) PLANS
see also INCOME-DRIVEN REPAYMENT PLANS; REPAYMENT PLANS
history of, 3.3.2
overview, 3.3.5
INCOME TAX ISSUES
see TAX ISSUES
INCOME TAX OFFSETS
see TAX REFUND OFFSETS
INFANCY
availability as defense, 8.5.4.1
INFORMATION ON STUDENT LOANS
see ASSISTANCE FOR BORROWERS; DISCLOSURES
INJUNCTIVE RELIEF
collection activities, 13.7.2.1
DOE, against, 13.7.2.1
INSTITUTIONS
see SCHOOLS
INSTITUTIONS OF HIGHER EDUCATION
see also SCHOOLS
cohort default rates, 13.2.2.3.2
defined, 1.7.1.2
disclosure requirements, 1.7.2, 13.6.3.2.3
eligibility for federal student assistance, 1.7, 13.2.2
accreditation, 13.2.4
administrative capability, 13.2.2.3
financial responsibility, 13.2.2.4
generally, 1.7.1.1
Program Participation Agreements, 13.2.2.2
program requirements, 1.7.1.3
selected regulations, Appx. B.4.1
state authorization, 13.2.3
for-profit institutions, see PROPRIETARY INSTITUTIONS
“net price calculator”, requirement, 11.2.3.4
oversight, 13.2, 13.6.3.2.2
state regulations, Appx. E
INTEGRATED POSTSECONDARY EDUCATION DATA SYSTEM (IPEDS)
information source, 13.7.5
INTEREST
capitalization, 2.3.2
deferments, 4.3.1
ICRPs, 3.3.4.3
consolidation loans, 2.3.5
federal interest rates, 2.3
IBR plans, treatment, 3.3.3.5
income tax deductions, 1.10
military personnel, 2.3.1
PAYE plans, treatment, 3.3.3.5
Perkins loans, 2.3.4
PLUS loans, 2.3.4
postjudgment interest, 8.3.4
private loans, 2.3.1, 12.2.1
Stafford loans, 2.3.3
usury limits, 2.3.1
waiver, see COMPROMISES
INTERNET COURSES
see DISTANCE EDUCATION PROGRAMS
INTERROGATORIES
see DISCOVERY
IRAQ AND AFGHANISTAN SERVICE GRANTS
see also FEDERAL GRANTS
overview of program, 1.4.2.3
JOINDER
school-related claims, 8.5.2
JOINT DEBTORS
bankruptcy chapter 13 plans, 11.9.5
co-debtor stay, 11.10
bankruptcy discharges, 11.3.2
co-borrowers as creditors, 11.3.3
forbearances, 4.4.3
statutory discharges
death, 10.8
disability, 10.7.2
joint consolidation loans, 10.2
JUDGMENTS
consolidation of loan after, 7.2.2
disability discharge after, 10.7.2
rehabilitation of loan after, 7.3.2
repayment of loan after, 7.5
vacating collection judgments, 8.6
JUDICIAL REVIEW
discharge denial, 10.15
disability discharge, 10.7.4.1
tax refund offsets, 9.2.7
wage garnishments, 9.3.5
LACHES
application to student loan cases, 8.5.3.3.1
elements of defense, 8.5.3.3.2
exceptions to the rule barring, 8.5.3.3.2
FISL collections, 8.5.3.3.3
LANGUAGE
ability-to-benefit tests, 10.4.2.3
LATE CHARGES
federal loans, 2.4.2
LAW ENFORCEMENT OFFICERS
deferment eligibility, 4.3.8
LEAVE OF ABSENCE
approved leave, 10.3.1
LEGAL CLAIMS
see also ACTIONS; DEFENSES
affirmative litigation, 13.7
see also LITIGATION AIDS
actual damages, proving, 13.7.6
class vs. individual actions, 13.7.3
developing case, 13.7.5
generally, 13.7.1
mandatory arbitration, 13.7.4
potential defendants, 13.7.2
common law claims, 13.6.4
contract claims, 13.6.4.2
fiduciary duty, 13.6.4.3
intentional torts, 13.6.4.1
federal claims, 13.6.2
ECOA, 13.6.2.6
False Claims Act, 13.6.2.3
FCRA, 13.6.2.9
FDCPA, 13.6.2.8
FTC violations, 13.6.2.4
HEA, 13.6.2.1
RICO, 13.6.2.2
TCPA, 13.6.2.10
TILA, 13.6.2.7
tort claims, 13.6.2.5
state claims, 13.6.3
education laws, 13.6.3.2
federal preemption, 13.6.3.4
other state claims, 13.6.3.3
RICO, 13.6.3.3
UDAP, 13.6.3.1
LENDERS
actions against
federal loans, 13.6, 13.7
private loans, 12.10
banks, see BANKS
collections
collection fees, 8.3.1
mandatory requirements, 8.2.3.1
Direct loans, see DEPARTMENT OF EDUCATION (DOE)
FDCPA, application, 8.4.3.4
origination relationships, 13.8.5.2
private education loans, see PRIVATE STUDENT LOANS
prohibited inducements, 13.2.2.2.5
referral relationship with school, 13.8.4.1
prohibited inducements, 13.2.2.2.5
school preferred-lender lists, 13.2.2.2.5
school as lender
federally funded loans, see PERKINS LOANS
private loans, see PRIVATE STUDENT LOANS
school misconduct, liability for, 12.9, 13.8
agency theories, 13.8.5.5
consolidated loans, 8.5.4.4
FTC Holder Notice, 12.9.4.4, 13.8.4.1, 13.8.5.3
guaranteed-status lost loans, 8.5.4.3
origination theories, 13.8.5.2
private loans, 12.9
state law, 13.6.3.2.5, 13.8.5.4
secondary market lenders, see SECONDARY MARKET LENDERS
student loan specialist, see STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE)
LICENSES
suspension or revocation of professional licenses, 9.6
LICENSING AGENCIES (STATE)
see also ACCREDITING AGENCIES; STATE AGENCIES
claims against, 13.7.2.3
school oversight, 13.2.3, 13.6.3.2.2
distance education, 13.2.3.2
LIMITATIONS
see also STATUTE OF LIMITATIONS
credit reports, defaulted loans, 8.2.3.2
LITIGATION AIDS
see also LEGAL CLAIMS
class vs. individual action, 13.7.3
developing a case, 13.7.5
mandatory arbitration requirements, 13.7.4
potential defendants, 13.7.2
DOE, 13.7.2.1
private accrediting agencies, 13.7.2.2
school and owners, 13.2.7.4
state licensing agencies, 13.7.2.3
sample pleadings, Appx. F
LOAN REHABILITATION
see REHABILITATION OF LOANS
LOAN SERVICING
see SERVICING OF LOANS
MALPRACTICE
educational malpractice claims, 13.6.4.2
MANDATORY ARBITRATION
see ARBITRATION AGREEMENTS
MASTER PROMISSORY NOTE
federal loans, 2.8
counseling requirements, 2.9
FFELs, 13.8.4.1
MILITARY PERSONNEL
cancellation of loans, 10.9.2
Perkins loans, 10.12
collection proceedings, stay, 9.3.2.3
consolidation loans, 7.2.3
defenses for service members
federal loans, 8.5.4.5
private loans, 12.8.4
deferments
active duty, 4.3.5.4
applying for, 4.3.4
Perkins loans, 4.3.8
post-active duty, 4.3.5.5
pre-July 1, 1993 FFELs, 4.3.7
disability discharge, 10.7.4.2
educational benefits for service members, 1.4.4
other protections and programs, 1.4.4.2
post-9/11 G.I. bill, 1.4.4.1
forbearances
mandatory forbearance, 4.3.5.5, 4.4.4
Perkins loans, 4.4.5
grant repayment, 2.7
interest rate protections, 2.3.1
proprietary school recruitment, 13.2.6
rehabilitation of loans, 7.3.3
repayment grace period, 4.2
Servicemember Civil Relief Act, 8.5.4.5, 12.8.4
statute of limitations, tolling, 12.8.3.4
wage garnishment restrictions, 9.3.2.3
MISREPRESENTATIONS
see also DECEPTIVE CONDUCT
accrediting agencies, claims re, 13.7.2.2
fraudulent, see FRAUD
HEA regulations, 13.2.2.2.4
violations, 13.6.2.1
proprietary schools, 13.8.5.5
performance data, 13.3.3.3
school eligibility, effect, 13.2.2.2.4
state prohibitions, 13.6.3.2.3
UDAP claims, 13.6.3.1.2
MISTAKE
defense to loan enforceability, 8.5.4.1
MODIFICATION OF LOANS
see also REPAYMENT PLANS
private loans, 12.7.3
MODULE COURSES
withdrawal from, 2.7
MOTHERS
FFELs deferments, 4.3.7
NATIONAL CENTER FOR EDUCATION STATISTICS (NCES)
information source, 13.7.5
NATIONAL CLEARINGHOUSE FOR LEGAL SERVICES
see SARGENT SHRIVER NATIONAL CENTER ON POVERTY LAW
NATIONAL CONSUMER LAW CENTER STUDENT LOAN BORROWER ASSISTANCE PROJECT
see STUDENT LOAN BORROWER ASSISTANCE PROJECT (NCLC)
NATIONAL DEFENSE STUDENT LOANS
see PERKINS LOANS
NATIONAL DIRECT STUDENT LOANS
see PERKINS LOANS
NATIONAL SMART GRANTS
see also FEDERAL GRANTS
expiration of program, 1.4.2.3
NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
collections information, 8.2.1
listing of federal loans, 12.2.2
using, 1.9
NATURAL DISASTERS
see DISASTER SITUATIONS
NAVIENT SOLUTIONS
see also STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE)
transfer of Sallie Mae loans, 12.3
NEGATIVE AMORTIZATION
income-driven repayment plans, 3.3.1
ICRs, 3.3.4.2
NEGLIGENCE CLAIMS
school misconduct, 13.6.4.1
accrediting agencies, 13.7.2.2
DOE, 13.6.2.5
NONPROFIT INSTITUTIONS
see INSTITUTIONS OF HIGHER EDUCATION; VOCATIONAL INSTITUTIONS
NOTICE
closed-school discharge, eligibility, 10.3.6.1
defaulted loans
assignment to guaranty agency, 8.2.2
prior to credit reporting, 8.2.3.1
prior to federal benefits offsets, 9.4.3.1
prior to tax refund offset, 9.2.2
prior to wage garnishment, 9.3.2.2, 9.3.3.1
deferred interest, 4.3.1
disability discharges
denial, 10.7.4.1
reinstatement, 10.7.5.2
FFELs, holder notice, 13.8.4.1, 13.8.5.3
failure to provide, 13.8.5.3
FTC Holder Rule, see HOLDER RULE (FTC)
OFFSETS
federal benefits, see FEDERAL BENEFIT OFFSETS
federal salary, see FEDERAL SALARY OFFSETS
tax refunds, see TAX REFUND OFFSETS
OMBUDSMAN PROGRAMS
CFPB student ombudsman, 1.12.1.3
federal ombudsman, see STUDENT AID OMBUDSMAN
guaranty agencies, 1.12.1.2
private loans, 1.12.1.3, 12.7.4
Sallie Mae, 1.12.1.2
ONLINE COURSES
see DISTANCE EDUCATION PROGRAMS
ORIGINATION FEES
federal loans, 2.4.1
ORIGINATION RELATIONSHIP
lender and school, 13.8.5.2
OVERPAYMENTS
bankruptcy discharge, 11.2.3.3
effect on future aid, 1.6.6
Pell Grants, 1.4.2.2.2
PARENTAL LEAVE
see also
FFEL deferments, 4.3.7
PARENTAL (PLUS) LOANS
see PLUS LOANS
PARENTS
see ACCOMMODATION PARTIES
PAY AS YOU EARN (PAYE) REPAYMENT PLANS
see also INCOME-DRIVEN REPAYMENT PLANS; REPAYMENT PLANS
annual review, 3.3.3.6.1
applying for, 3.3.3.4
eligibility, 3.3.3.2
history of, 3.3.2, 3.3.3.1
IBR differences, 3.3.3.9
income documentation
missed or late, 3.3.3.6.2, 3.3.3.6.3
interest treatment, 3.3.3.5
leaving plan, 3.3.3.7
loan forgiveness, 3.3.3.8
payment allocation, 3.3.3.5, 3.5
repayment formula, 3.3.3.3
unique issues, 3.3.3.9
PAYMENTS
see REPAYMENT OF LOANS
PEACE CORPS SERVICE
deferment eligibility, 4.3.5.2, 4.3.8
Perkins cancellations, 10.12
PELL GRANTS
see also FEDERAL GRANTS
overpayments, 1.4.2.2.2
overview of program, 1.4.2.2.1
repayment unnecessary, 1.4.2.1
PENALTIES
see COLLECTION FEES
PERKINS LOANS
see also FEDERAL STUDENT LOANS
administration of, 1.4.1.4
bankruptcy discharge, 11.2.3.1, 11.7.1
cancellation of loans, 10.12
cohort default rate, 6.3.1.1
collections
assignment to DOE, 8.2.1
collection fees, 8.3.2.3
compromise and write-off, 7.6.1, 7.6.4
consolidation, 7.2.2
credit reports, 8.2.3.2
default triggers, 6.2.1, 8.2.2
defenses
false-certification, 10.4.1
school-related, 13.8.3
unpaid refunds, 10.5
deferment rights
grounds, generally, 4.3.8
military deferment, 4.3.5.4, 4.3.5.5, 4.3.8
disclosure requirements, 2.5.2
forbearances, 4.4.5
interest rates, 2.3.4
loan limits, 2.2.4
master promissory note, 2.8
origination fees, 2.4.1
overview, 1.4.1.4
PERKINS LOANS (cont.)
rehabilitation of loan, 7.3.6
repayment grace period, 4.2
repayment plans, 3.4
servicing, 5.2.3
see also SERVICING OF LOANS
due diligence, 5.4.2
statutory discharges
see also STATUTORY DISCHARGES
closed-school discharge, 10.3.7
death discharge, 10.8
disability discharge, 10.7.2
eligibility, 10.2
statutory provision, text, Appx. A.3
regulations, Appx. B.3
PERSONAL IDENTIFICATION NUMBER (PIN)
federal student aid programs, use, 1.9
PLEADINGS
sample pleadings, Appx. F
PLUS LOANS
see also DIRECT LOANS
bankruptcy discharge, 11.13
consolidation, 7.2.2
disadvantages, 7.4
counseling requirements, 2.9
default rates, 6.3.2
deferments, 4.3.6
disclosure requirements, 2.5.2
IBR eligibility, 3.3.3.2
ICR eligibility, 3.3.4.1
interest rates, 2.3.4
loan limits, 2.2.3
origination fees, 2.4.1
overview, 1.4.1.2
PAYE eligibility, 3.3.3.2
public service cancellation, 10.9.2
repayment grace period, 4.2
statutory discharge
see also STATUTORY DISCHARGES
closed-school discharge, 10.3.1
death discharge, 10.8
disability discharge, 10.7.2
false certification discharge, 10.4.1
unpaid-refund discharge, 10.5
POST-SECONDARY INSTITUTIONS
see INSTITUTIONS OF HIGHER EDUCATION; VOCATIONAL INSTITUTIONS
PRACTICE TIPS
ATB falsification, obtaining evidence, 10.4.2.6
checklist for handling student loan issues, 1.11
frequently asked questions, Appx. I
litigation aids, see LITIGATION AIDS
resource aids, see RESOURCE AIDS
PRE-DEFAULT REPAYMENT
see REPAYMENT PLANS
PRE-DEFAULT SERVICING
see SERVICING OF LOANS
PREEMPTION
see FEDERAL PREEMPTION
PREFERRED LENDER LISTS
prohibited inducements, 13.2.2.2.5
PRIVATE ACCREDITING AGENCIES
see ACCREDITING AGENCIES
PRIVATE STUDENT LOANS
advantages, 1.8, 12.2.1
application process, 12.2.1
arbitration agreements, 13.7.4
bankruptcy
default clauses in agreement, 11.14
discharge, 11.2.3.4
cancellation rights, 12.4.1.6, 12.7.3
CFPB oversight, 12.2.1, 12.3
collection abuses, 8.4.2.1, 12.6.3
default and delinquency, 6.2, 12.6
collections, 12.6.3
consequences, 6.1.3.2
defined, 6.2.2
high rate of, 6.1.1, 12.6.1
“prudent workout” arrangements, 12.7.2
relief for borrowers, 12.7
triggers, 6.2.2, 12.6.2
defenses in collection actions, 12.8, 13.6.1
contract defenses, 12.8.1
inadequate evidence, 12.8.5
infancy, 12.8.2
school-related, 12.9
service members, 12.8.4
statute of limitations, 12.8.3
deferments, 12.7.2
direct claims against lenders, 12.10
disclosure requirements, 12.4, 12.4.1a
HEA, 12.4.2
TILA, 12.4.1
fair billing issues, 12.5
FDCPA, application, 12.2.1, 12.5.1
federal loans compared, 1.8, 12.2.1
distinguishing, 1.9, 12.2.2
forbearances, 12.7.2
FTC Holder Notice, 12.9, 13.8.1
guaranteed status lost loans as, 8.5.4.3
HEA, application, 12.2.1
how to tell a private loan, 12.2.2
interest rates, 2.3.1, 12.2.1
modifications, 12.7.3
negotiable instruments, 12.8.5.4
ombudsman, 1.12.1.3, 12.7.4
oversight, 12.3
overview of market, 12.1
generally, 12.1.1
school products, 12.1.3
state products, 12.1.2
types of borrowers, 12.1.4
overview of problems, 1.8, 12.6.1
proprietary schools, 13.3.3.6
real party in interest, 12.8.5.3
refinancing, 12.7.3
relief for borrowers, 12.7
cancellations, 12.7.3
deferments, 12.7.2
direct claims, 12.10
forbearances, 12.7.2
generally, 12.7.1
modifications, 12.7.3
refinancing, 12.7.3
sample pleadings, Appx. F
school certification, 12.2.1
school-preferred lenders, 13.2.2.2.5
school-related claims and defenses, 12.9, 13.8.1
FTC Holder Rule, 12.9, 13.8.1
self-certification form, 12.4.1.5, 13.2.2.2.5
servicing issues, 12.5
generally, 12.5.1
payment allocation, 12.5.2
statutory provisions, selected text, Appx. A.6
regulations, Appx. B.6
terms and conditions, 12.2
TILA, application, 12.2.1, 12.5.1
TILA disclosures, 12.4.1
application disclosures, 12.4.1.4.1
approval disclosures, 12.4.1.4.2
final disclosures, 12.4.1.4.3
form and content, 12.4.1.4
remedies, 12.4.1.7
scope, 12.4.1.2
self-certification, 12.4.1.5
timing, 12.4.1.3
waiting period, 12.4.1.6
TILA prepayment restrictions, 12.4.1.1
written agreement, 12.8.5.2
PRODUCTION OF DOCUMENTS
see DISCOVERY
PROFESSIONAL DISCHARGES
loan cancellation for certain professions, 10.9
9/11 program, 10.13
generally, 10.9.1
other professions, 10.11
Perkins loans, 10.12
public service, 10.9.2
tax issues, 10.14
teachers, 10.10
PROFESSIONAL LICENSES
suspension or revocation for default, 9.6
PROFESSIONAL STUDENTS
see GRADUATE STUDENTS
PROGRAM PARTICIPATION AGREEMENTS
90/10 rule, 13.2.2.2.2
general requirements, 13.2.2.2.1
incentive compensation limits, 13.2.2.2.3
misrepresentation regulations, 13.2.2.2.4
private education loan certification, 13.2.2.2.5
prohibited inducement requirements, 13.2.2.2.5
proprietary schools, 13.2.2.2.2
PROMISSORY NOTE
federal loans, see MASTER PROMISSORY NOTE
FTC Holder Notice, 12.9
negotiable instrument status, 12.8.5.4
PROPERTY SEIZURES
see SEIZURE OF PROPERTY AND ASSETS
PROPRIETARY INSTITUTIONS
see also SCHOOLS
abuses
see also SCHOOL-RELATED CLAIMS AND DEFENSES
common abuses, 13.3.3
common law claims, 13.6.4
current concerns, 13.3.2
federal claims, 13.6.2
history of, 13.3.1
sample pleadings, Appx. F
state claims, 13.6.3
admissions criteria, 13.3.3.4
aggressive marketing, 13.3.3.2
arbitration agreements, 13.7.4
closures, 10.3.1
cohort default rate, 13.2.2.3.2
excessive rates, 6.1.1, 13.3.3.1
manipulation of rates, 6.4
sanctions, 13.2.2.3.2
completion rates, 1.7.2, 13.3.3.3
resource data, 13.7.5
correspondence courses, see CORRESPONDENCE COURSES
definition, 1.7.1.2
diploma mills, 13.4.2
disclosure requirements, 1.7.2, 13.6.3.2.3
distance education programs, see DISTANCE EDUCATION PROGRAMS
false certification, 10.4
federal student aid eligibility, 1.7, 13.2
accreditation, 13.2.4, 13.7.2.2
administrative capability, 13.2.2.3
admissions standards, 1.7.1.5
consumer information requirements, 1.7.2
distance education, 1.7.1.4, 13.2.3.2, 13.3.3.5
financial responsibility, 13.2.2.4
gainful employment, 1.7.2, 13.2.2.5, 13.3.3.3
generally, 1.7.1.1
misrepresentations, 13.2.2.2.4
private education certification forms, 13.2.2.2.5
program requirements, 1.7.1.3
regulations, selected text, Appx. B.4.1
state authorization, 13.2.3
fiduciary duty, 13.6.4.3
FTC guides, 13.6.2.4
growth of, 13.3.2
job placement rates, 1.7.2, 13.3.3.3
resource data, 13.7.5
lender-referral, 13.8.4.1
preferred-lender lists, 13.2.2.2.5
military service members, recruitment, 13.2.6
oversight, 13.2, 13.6.3.2.2
gaps, 13.2.5
inadequate, claims re, 13.6.2.5
state regulations, Appx. E
private loans, 13.3.3.6
internal products, 12.1.3, 13.3.3.6
self-certification form, 12.4.1.5, 13.2.2.2.5
Program Participation Agreements, 13.2.2.2
“90/10” rule, 13.2.2.2.2
recruiters, see RECRUITERS
school as lender
federally funded loans, see PERKINS LOANS
private loans, 12.1.3
unpaid refunds, 10.5
PUBLIC ASSISTANCE BENEFITS
deferment eligibility, 4.3.5.2
offsets, see FEDERAL BENEFITS OFFSETS
PUBLIC SERVICE CANCELLATION
see also CANCELLATION OF LOAN
9/11 program, 10.13
application process, 10.9.2.4
eligible borrowers, 10.9.2.2
eligible jobs, 10.9.2.3
eligible loans, 10.2
generally, 10.9.1, 10.9.2.1
Perkins loans, 10.12
tax issues, 10.14
teachers, 10.10
QUALIFIED STUDENT LOANS
income tax purposes, 1.10
RACKETEERING INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO)
see RICO CLAIMS
RECORDS
defaulted loans, right to inspect, 8.2.2, 9.2.5
school records and files, obtaining, 10.4.2.6.3
transcripts, see TRANSCRIPTS
RECOUPMENT CLAIMS
school-related claims, 13.7.2.4
RECRUITERS
abuses by, 13.3.3.2
military service member recruitment, 13.2.6
state law, 13.6.3.2.3
UDAP claims, 13.6.3.1.2
incentive compensation limits, 13.2.2.2.3
REFINANCING OF LOANS
federal loans, see CONSOLIDATION LOANS
private loans, 12.7.3
REFUNDS
see also UNPAID REFUNDS DISCHARGE
paid-in-full discharged loans, 10.3.5
state education laws, 13.6.3.2.4
REHABILITATION OF LOANS
advantages and disadvantages, 7.4
credit reporting, 7.3.5
bias towards, 7.3.1
checklist, 1.11.4
collection abuses, 8.4.1.2
collection fees, 8.3.2.2
completing the rehabilitation, 7.3.5
counseling, 7.2.2, 7.3.1, 7.3.4
credit record, effect, 8.2.3.3
eligibility, 7.3.2
fees, 7.3.5
FFELs, sale after, 7.3.5
garnishment during, 7.3.2
generally, 7.3.1
payment requirements, 7.3.3
reasonable and affordable, 7.3.4
voluntary payments, 7.3.2
Perkins loans, 7.3.6
written agreement, 7.3.5
REHABILITATION TRAINING PROGRAMS
deferment eligibility, 4.3.5.1, 4.3.7
REPAYMENT OF LOANS
allocation of payments, 3.5
IBR and PAYE, 3.3.3.5
checklist, 1.11.4
collection procedures, see COLLECTION OF STUDENT LOANS
consolidation loans, 7.2.3, 7.2.4.3
credit reporting, 8.2.3.1, 8.2.3.3
grace periods, 4.2
loan forgiveness, see CANCELLATION OF LOAN
post-default
consolidation, see CONSOLIDATION LOANS
reasonable and affordable payments, 7.2.3, 7.3.4
rehabilitation, see REHABILITATION OF LOANS
repayment plans, see under REPAYMENT PLANS
strategy checklist, 1.11.5
postponement
deferment, see DEFERMENT
forbearance, see FORBEARANCE
grace periods, 4.2
pre-default, see under REPAYMENT PLANS
statute of limitations, see STATUTE OF LIMITATIONS
undue hardship, 11.4.2
REPAYMENT PLANS
see also REPAYMENT OF LOANS
bankruptcy discharge, effect, 11.4.2.3
chapter 13 bankruptcies, see BANKRUPTCY DISCHARGE
checklist, 1.11.4
consolidation loans, 7.2.4.3
credit record, effect, 8.2.3.3
IBRP, see INCOME-BASED REPAYMENT (IBR) PLANS
ICRP, see INCOME-CONTINGENT REPAYMENT (ICR) PLANS
ISRP, see INCOME-SENSITIVE REPAYMENT (IRS) PLANS
post-default plans
consolidation loans, 7.2.3
loan rehabilitation, 7.3.3, 7.3.4
prior to federal benefit offset, 9.4.3.1
prior to tax refund offset, 9.2.4
prior to wage garnishment, 9.3.2.4
pre-default plans
allocation of payments, 3.3.3.5, 3.5
alternative plans, 3.3.6
extended plans, 3.2
generally, 3.1
graduated plans, 3.2
income-based repayment, 3.3.3
income-contingent repayment, 3.3.4
income-driven plans, 3.3
income-sensitive repayment, 3.3.5
pay as you earn, 3.3.3
Perkins Loans, 3.4
standard plans, 3.2
RESOURCE AIDS
Clearinghouse citations, 1.2.2
Department of Education, 1.12.2
loan type determination, 1.9, 12.2.2
NCLC borrower assistance project, 1.12.3
website, 1.12.3, Appx. J
NCLC treatise, 1.2
ombudsman programs, 1.12.1.2
pleadings, Appx. F
web resources, see WEB RESOURCES
RICO CLAIMS
private student loans, 12
school misconduct
federal claims, 13.6.2.2
state claims, 13.6.3.3
SALLIE MAE
see STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE)
SARGENT SHRIVER NATIONAL CENTER ON POVERTY LAW
see also CLEARINGHOUSE CITATIONS
Clearinghouse documents, obtaining, 1.2.2
SCHOLARSHIPS
finder-fee companies, scams, 13.4.1
SCHOOL AS LENDER
federally funded loans, see PERKINS LOANS
private loans, see PRIVATE STUDENT LOANS
SCHOOL-RELATED CLAIMS AND DEFENSES
see also DEFENSES
accrediting agencies, claims against, 13.7.2.2
actual damages, 13.7.6
affirmative litigation, 13.7
class actions, 13.7.3
common law claims, 13.6.4
declaratory relief, 13.7.2.1, 8.5.2
developing the case, 13.7.5
federal claims, 13.6.2
injunctive relief, 13.7.2.1
potential defendants, 13.7.2
proving damages, 13.7.6
state claims, 13.6.3
arbitration, 13.7.4
bankrupt schools, 13.7.2.4
chapter 13 bankruptcy, raising, 11.11
class actions, see CLASS ACTIONS
closed schools, 13.7.2.4
common abuses, 13.3.3
common law claims, 13.6.4
contracts, 8.5.4, 13.6.4.2
fiduciary duty, 13.6.4.3
torts, 13.6.4.1
consolidation loans, raising after, 8.5.4.4
credit reports, correcting, 8.2.3.3
defending collection actions, 8.5, 12.9, 13.8
consolidated loans, 8.5.4.4
contract defenses, 8.5.4
Direct loans, 13.8.2
federal loans, 8.5
FFELs, 8.5.4.3, 13.8.4, 13.8.5
FISLs, 8.5.3.3.3, 13.8.6
generally, 8.5.1, 13.8.1
Perkins loans, 13.8.3
procedural issues, 8.5.2
service members, 8.5.4.5
diploma mills, 13.4.2
Direct Loans, 13.8.2
DOE
appeals process, 3.2.2.6
claims against, 13.7.2.1
evidence, obtaining, 13.7.5
false certification, 10.4
federal claims, 13.6.2
False Claims Act, 13.6.2.3
HEA, 13.6.2.1
RICO, 13.6.2.2
FFELs, 8.5.4.3, 13.8.4, 13.8.5
fiduciary duty, 13.6.4.3
FISLs, 13.8.6
FTC Holder Rule, 12.9.2
guaranteed status lost, effect, 8.5.4.3
importance of raising, 12.9.1
ineligible schools, 8.5.4.3
insolvent schools, 13.7.2.4
joinder, 8.5.2
legal claims, 13.6
agency, 13.8.5.5
common law claims, 13.6.4
contract claims and defenses, 8.5.4, 13.6.4.2
education laws, 13.6.2.1, 13.6.3.2
False Claims Act, 13.6.2.3
federal claims, 13.6.2
fraud claims, 13.6.4.1
misrepresentation, 13.8.5.5
negligence claims, 13.6.2.5, 13.6.4.1
RICO, 13.6.2.2, 13.6.3.3
state claims, 13.6.3
UDAP claims, see UDAP CLAIMS
lender liability for, 13.8
agency theories, 13.8.5.5
DOE, 13.8.2
FFELs, 13.8.4, 13.8.5
FTC Holder Notice, 13.8.5.3
generally, 13.8.1
non-guaranteed loans, 8.5.4.3
origination theories, 13.8.5.2
private loans, 12.9
state law, 13.6.3.2.5, 13.8.5.4
mandatory arbitration, 13.7.4
Perkins Loans, 12.8.3
private loans, 12.9
proprietary schools, 13.3.3
raising, 12.9, 13.8
importance, 12.9.1
recoupment claims, 13.7.2.4
scholarship scams, 13.4.1
school closure, 10.3.7
state claims, 13.6.3
education laws, 13.6.3.2
other claims, 13.6.3.3
preemption, 13.6.3.4
RICO claims, 13.6.3.3
UDAP theories, 13.6.3.1
state licensing agencies, claims against, 13.7.2.3
state tuition recovery funds, 13.5.2
statutory discharge
alternative, 8.5.4.1, 13.5.1
contract defenses, relationship, 8.5.4.2
tuition recovery funds, relationship, 13.5.2.2
types of school misconduct, 10.4.1, 13.3.3
SCHOOLS
accreditation, 13.2.4
administrative capability, 13.2.2.3
admission standards, 1.7.1.5
bankrupt or insolvent schools, 13.7.2.4
claims against, see SCHOOL-RELATED CLAIMS AND DEFENSES
closed-school discharge, 10.3
colleges and universities, see INSTITUTIONS OF HIGHER EDUCATION
consumer information requirements, 1.7.2, 13.6.3.2.3
correspondence courses, see CORRESPONDENCE COURSES
counseling requirements, 2.9
default rate manipulation, 6.4
diploma mills, see DIPLOMA MILLS
disclosure requirements, 1.7.2, 13.6.3.2.3
distance education programs, see DISTANCE EDUCATION PROGRAMS
DOE files on, obtaining, 10.4.2.6.2
“eligible institutions,” 1.7
consumer information requirements, 1.7.2
eligibility criteria, 1.7.1, 13.2
oversight, 13.2, 13.6.3.2.2
regulations, selected text, Appx. B.4.1
falsification discharge, 10.4
FDCPA, application, 8.4.3.4
federal grant programs, administration, 1.4.2.1
federal regulations, 13.2.2
enforcement, 13.2.5
selected text, Appx. B.4
files and records, obtaining, 10.4.2.6.3
financial aid administrators, see FINANCIAL AID ADMINISTRATORS
financial responsibility, 13.2.2.4
lender-referral
FFELs, 13.8.4.1
preferred-lender lists, 13.2.2.2.5
prohibited inducements, 13.2.2.2.5
loans directly from
collection fees, 8.3.1
Perkins Loans, see PERKINS LOANS
private loans, 12.1.3
misrepresentations, 13.2.2.2.4
“net price calculator”, requirement, 11.2.3.4
origination relationships, 13.8.5.2
oversight
accrediting agencies, 13.2.4
federal, 13.2.2
gaps in enforcement, 3.2.5
state, 13.2.3, 13.6.3.2.2
Pell Grant overpayments, 1.4.2.2.2
Program Participation Agreements, see PROGRAM PARTICIPATION AGREEMENTS
proprietary schools, see PROPRIETARY INSTITUTIONS
recruiters, see RECRUITERS
scholarship scams, 13.4.1
state authorization, 13.2.3
transcripts, see TRANSCRIPTS
types of schools, 1.7.1.2
unpaid refunds, 10.5
vocational schools, see VOCATIONAL INSTITUTIONS
SECONDARY MARKET LENDERS
see also LENDERS
FDCPA, application, 8.4.3.4
Sallie Mae, see STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE)
SECRETARY OF EDUCATION
see DEPARTMENT OF EDUCATION (DOE)
SEIZURE OF PROPERTY AND ASSETS
federal benefits, see FEDERAL BENEFITS OFFSETS
federal salary, see FEDERAL SALARY OFFSETS
generally, 9.1
student assistance funds, 1.4.3, 9.7
tax refunds, see TAX REFUND OFFSETS
wage garnishments, see WAGE GARNISHMENTS
SELF-CERTIFICATION FORM
private education loans, 12.4.1.5
SERVICEMEMBER CIVIL RELIEF ACT
see also MILITARY PERSONNEL
protections, 8.5.4.5, 12.8.4
interest rates, 2.3.1
SERVICING OF LOANS
borrower protections, 5.5
HEA requirements, 5.5.2, 5.6.4.1
generally, 5.5.1
borrower relief, 5.6
complaint procedures, 5.6.3
generally, 5.6.1
legal claims, 5.6.4
public enforcement, 5.6.2
claims against servicers, 5.6.4
HEA, 5.6.4.1
other claims, 5.6.4.3
state law claims, 5.6.4.2
common problems, 5.3
complaint procedures, 5.6.3
consolidation loans, 5.2.1.1, 7.2.4.2
Direct loans, 5.2.1
choice of servicer, 5.2.1.1
contract system, 5.2.1.1
due diligence, 5.4.1
performance metrics, 5.2.1.2
due diligence requirements, 5.4
FFEL and Direct loans, 5.4.1
Perkins loans, 5.4.2
FDCPA, application, 5.6.4.3, 8.4.3.4
FFELs, 5.2.2
due diligence, 5.4.1
government oversight, 5.6.2
Perkins loans, 5.2.3
due diligence, 5.4.2
private loan requirements, 12.5.1
quality of servicing, importance, 5.1
TCPA, application, 5.6.4.3
SLSs
see SUPPLEMENTAL LOANS FOR STUDENTS (SLSs)
SMART GRANTS
see NATIONAL SMART GRANTS
SOCIAL SECURITY BENEFITS
see also SUPPLEMENTAL SECURITY INCOME (SSI)
deferment eligibility, 4.3.5.2
offsets, see FEDERAL BENEFITS OFFSETS
SOCIAL WORKERS
Perkins loan cancellation, 10.12
public service cancellation, 10.9.2
SOVEREIGN IMMUNITY
laches doctrine, application, 8.5.3.3.1
state agencies, bankruptcy dischargeability proceedings and, 11.8
SPOUSES
bankruptcy discharges, 11.3.2
consolidation of loans, 1.4.1.3.4
repayment plans, income considerations
IBRs, 3.3.3.2
ICRs, 3.3.4.2
same-sex, inclusion in definition, 3.3.3.3, 3.3.4.2
tax refund offsets, rights, 9.2.10
temporary disability, FFEL deferment, 4.3.7
STAFFORD LOANS (GSLs)
see also DIRECT LOANS
bankruptcy discharge, 11.2.3.1
consolidation, 7.2.2
disbursement of funds, 2.6
disclosure requirements, 2.5.2
interest rates, 2.3.3
loan limits, 2.2.2
origination fees, 2.4.1
overview, 1.4.1.1
STAFFORD LOANS (GSLs) (cont.)
public service cancellation, 10.9.2
repayment grace period, 4.2
statutory discharges
see also STATUTORY DISCHARGES
closed-school discharge, 10.3.7
death discharge, 10.8
unpaid-refund discharge, 10.5
STATE AGENCIES
bankruptcy dischargeability proceedings, 11.8
complaints to regarding collection abuses, 8.4.5.2
FOIA requests, 13.7.5
guaranty agencies, see GUARANTY AGENCIES
private loan oversight, 12.3
private loan products, 12.1.2
school oversight, see LICENSING AGENCIES (STATE)
state debts, offsets, 9.4.1
STATE LAW
cancellation and refund rights, 13.6.3.2.4
collection laws, application to student loans, 8.4.4
garnishment restrictions, 9.3.1
disclosure requirements, 13.6.3.2.3
lender liability statutes, 13.8.5.4
loan enforceability, application, 8.5.4.1
preemption, see FEDERAL PREEMPTION
private postsecondary schools, regulations, Appx. E
private student loans, application, 12.3, 12.10
professional license suspension for default, 9.6
school misconduct, 13.6.3
education statutes, 13.6.3.2
RICO claims, 13.6.3.3
UDAP claims, see UDAP CLAIMS
statute of limitations, 12.8.3
applicable state, 12.8.3.2
differing within state, 12.8.3.3
usury limits, 2.3.1
STATE LICENSING AGENCIES
see LICENSING AGENCIES
STATE TUITION RECOVERY FUNDS
relief for defrauded students, 13.5.2.1
statutory discharges, interrelationship, 13.5.2.2
STATUTE OF LIMITATIONS
appeals of agency decisions, 10.15
federal benefits offsets, 9.4.3.3
federal student loans, elimination, 8.5.3, 12.8.3.1
equitable defenses, application, 8.5.3.3.1
generally, 8.5.3.1
scope, 8.5.3.2
private student loans, 12.8.3
computing, 12.8.3.4
tolling, 12.8.3.4
STATUTORY DISCHARGES
9/11 related, 10.13
administrative not judicial process, 8.5.4.2
appeals, 10.15
closed-school discharge, see CLOSED-SCHOOL DISCHARGE
consolidation loans, 10.2
contract defense alternative, 8.5.4.1
interrelationship, 8.5.4.2
credit record, cleaning up, 8.2.3.3
death discharge, 10.8
disability discharge, see DISABILITY DISCHARGE
effect on future loans
bankruptcy discharge, 11.13
closed-school discharge, 10.3.5
disability discharge, 10.7.5.1, 10.7.7
false-certification discharge, 10.4.6
eligible loans, 10.2
false-certification discharge, see FALSE-CERTIFICATION DISCHARGE
forbearances pending, 4.4.3
guaranteed status lost loans, 8.5.4.3
interrelationship, 10.6
joint consolidation loans, 10.2
judicial review, 10.15
loans reduced to judgment, 10.7.2
multiple discharges, 10.6
overview, 10.1
paid-in-full loans, 10.3.5, 10.7.2
Perkins discharges, 10.12
profession-related loan cancellations, 10.9
other cancellations, 10.11
public service discharge, 10.9.2
teachers, 10.10
relief from school-related abuses, 13.5.1
sample pleadings, Appx. F
state tuition recovery funds, interrelationship, 13.5.2.2
tax issues, 10.14
unpaid refund discharge, see UNPAID REFUND DISCHARGE
STUDENT AID OMBUDSMAN
see FEDERAL STUDENT AID OMBUDSMAN
STUDENT GUIDES
DOE publications, 1.12.2
STUDENT LOAN BORROWER ASSISTANCE PROJECT (NCLC)
see also ASSISTANCE FOR BORROWERS
overview, 1.12.3
website, 1.12.3, Appx. J
STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE)
see also NAVIENT SOLUTIONS
FDCPA, application, 8.4.3.4
function, 1.3, 12.3
ombudsman program, 1.12.1.2
private loan management, 12.3
STUDENT LOAN OMBUDSMAN
see FEDERAL STUDENT AID OMBUDSMAN
STUDENT LOANS
administrators, see FINANCIAL AID ADMINISTRATORS
applying for, see APPLICATION FOR STUDENT AID
assistance for borrowers, see ASSISTANCE FOR BORROWERS
bankruptcy discharge, see BANKRUPTCY DISCHARGE
cancellation, see CANCELLATION OF LOAN
checklist, 1.11
collections, see COLLECTION OF STUDENT LOANS
comparison of federal and private loans, 1.8, 12.2.2
compromises, see COMPROMISES
debt rate, problems with, 1.1, 6.1
default rates, see DEFAULT RATES
defaulted loans, see DEFAULTED LOANS
deferments, see DEFERMENT
delinquent loans, see DELINQUENT LOANS
determining loan type, 1.9, 12.2.2
discharges, see BANKRUPTCY DISCHARGE; STATUTORY DISCHARGES
disclosure requirements, see DISCLOSURES
DOE central database, see NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS)
federal loans, see FEDERAL STUDENT LOANS
forbearances, see FORBEARANCE
forgiveness, see CANCELLATION OF LOAN
FTC Holder Notice, 12.9, 13.8.5.3
garnishment of funds, 1.4.3, 9.7
government loans, see FEDERAL STUDENT LOANS
interest on, see INTEREST
Internet resources, see WEB RESOURCES
litigation, see SCHOOL-RELATED CLAIMS AND DEFENSES
military personnel, see MILITARY PERSONNEL
NCLC treatise, using, 1.2
pre-default repayment, see REPAYMENT PLANS
private loans, see PRIVATE STUDENT LOANS
rehabilitation, see REHABILITATION OF LOANS
repayment, see REPAYMENT OF LOANS
resource aids, see RESOURCE AIDS
school direct loans, see PERKINS LOANS
seizure of funds, 1.4.3, 9.7
servicing, see SERVICING OF LOANS
statute of limitations, see STATUTE OF LIMITATIONS
statutory discharges, see STATUTORY DISCHARGES
tax issues, see TAX ISSUES
websites, Appx. K
see also WEB RESOURCES
STUDENT TUITION RECOVERY FUNDS
see STATE TUITION RECOVERY FUNDS
STUDENTS
ability-to-benefit tests, language, 10.4.2.3
approved leaves of absence, 10.3.1
assistance forms, Appx. D
assistance with loans, see ASSISTANCE FOR BORROWERS
consumer information requirements, 1.7.2, 13.6.3.2.3
deferment eligibility
Perkins Loans, 4.3.8
post-July 1, 1993 loans, 4.3.5.1
pre-July 1, 1993 FFELs, 4.3.7
eligibility for federal assistance, 1.6
federal assistance, generally, see FEDERAL STUDENT ASSISTANCE
loans to, generally, see STUDENT LOANS
private borrowing, reasons for, 12.1.4
see also PRIVATE STUDENT LOANS
SUITS
see ACTIONS
SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (FSEOG)
see also FEDERAL GRANTS
repayment unnecessary, 1.4.2.1
SUPPLEMENTAL LOANS FOR STUDENTS (SLSs)
see also STAFFORD LOANS (GSLs)
bankruptcy discharge, 11.2.3.1
consolidation, 7.2.2
death discharge, 10.8
elimination of program, 1.4.1.5
unpaid-refund discharge, 10.5
SUPPLEMENTAL SECURITY INCOME (SSI)
see also SOCIAL SECURITY BENEFITS
offset exemption, 9.4.1
collection abuses, 8.4.2.1
TAX ISSUES
cancellation of loan, 10.14
IBR or PAYE forgiveness, 3.3.3.8, 11.4.2.3.5
income tax deductions and credits, 1.10
TAX REFUND OFFSETS
advantages to borrower, 9.2.8
challenging
administrative review of loan, 9.2.5
Bivens suits, 9.2.7
due process challenges, 9.2.6
grounds, 9.2.3
post-offset challenges, 9.2.7
collection fee exemption, 8.3.3
non-obligated spouses, rights, 9.2.10
notice requirements, 9.2.2
overview, 9.2.1
preventing, 9.2.8
bankruptcy filing, 9.2.9
repayment plan in lieu, 9.2.4
school-related claims, raising, 13.7.2.1, 13.8.5.1
statute of limitations, 8.5.3.1
statutory provisions, selected text, Appx. A.5
regulations, Appx. B.5.2
TEACHERS
see also TEACH GRANTS
cancellation of loans, 10.10
generally, 10.9.1
Perkins loans, 10.12
tax issues, 10.14
deferment eligibility, 4.3.8
forbearances, 4.4.3, 4.4.4
TEACH GRANTS
see also FEDERAL GRANTS
overview, 1.4.2.3
TEACH-OUTS
closed-school discharge, 10.3.4
TECHNICAL SCHOOLS
see VOCATIONAL INSTITUTIONS
TELEPHONE ASSISTANCE
collections information, 8.2.1
consolidation loans, 7.2.4.2
TELEPHONE CONTACTS
defaulted loans, 8.2.2
rehabilitated loans, 7.3.5
TCPA restrictions, 8.4.5.1
violations, 13.6.2.10
TESTS
ATB certification, 10.4.2
TORT CLAIMS
accrediting agencies, against, 13.7.2.2
DOE, against, 13.6.2.5
fraud, see FRAUD
negligence, see NEGLIGENCE CLAIMS
schools, against, 13.6.4.1
TRADE SCHOOLS
see PROPRIETARY INSTITUTIONS; VOCATIONAL INSTITUTIONS
TRANSCRIPTS
withholding
bankruptcy filing, after, 11.13
debts owed to school, 9.8
TRUTH IN LENDING ACT (TILA)
application to student loans, 13.6.2.7
government loans, 2.5.1
private loans, 12.2.1, 12.4, 12.5.1, 12.10
violations, 12.10, 13.6.2.7
TUITION RECOVERY FUNDS
see STATE TUITION RECOVERY FUNDS
UDAP CLAIMS
accrediting agencies, against, 13.7.2.2
federal preemption, 13.6.3.4
FTC Holder Rule violations, 13.8.5.3
private loans, 12.10
school misconduct, 13.6.3.1
FTC guides, 13.6.2.4
overview, 13.6.3.1.1
particular practices, 13.6.3.1.2
servicing abuses, 5.6.4.2
UNDUE HARDSHIP
see also ECONOMIC HARDSHIP
bankruptcy discharge determination, 11.4
applying Brunner test, 11.4.2
Brunner test, 11.4.1
chapter 13 plan provisions, 11.7.2
current income and expenses, 11.4.2.1
good faith repayment attempts, 11.4.2.3
hardship likely to continue, 11.4.2.2
other factors, 11.4.3
discharge
DOE guidelines, 11.7.4
relation to other administrative discharge, 11.7.5
UNEMPLOYMENT
see also ECONOMIC HARDSHIP
deferment eligibility
economic hardship deferment, 4.3.5.2
FFELs, 4.3.2
Perkins Loans, 4.3.8
post-July 1, 1993 loans, 4.3.5.1
pre-July 1, 1993 FFELs, 4.3.7
unemployment deferment, 4.3.5.3
forbearances, 4.4.4
wage garnishment restrictions
DCIA, 9.3.2.3
HEA, 9.3.3.1
UNFAIR PRACTICES
FTC guides, 13.6.2.4
proprietary schools, 13.3
servicers, 5.6
UDAP claims, see UDAP CLAIMS
UNIVERSITIES
see INSTITUTIONS OF HIGHER EDUCATION
UNPAID REFUND DISCHARGE
see also
administrative review, 10.15
amount, determination, 10.5.3
applying for, 10.5.4
criteria, 10.5.2
effect, 10.5.5
eligible loans, 10.2
generally, 10.5.1
relationship to other discharges, 10.6
relief available, 10.5.5
tuition recovery funds, interrelationship, 13.5.2.2
USURY LIMITS
interest rates, 2.3.1
VETERANS
see MILITARY PERSONNEL
VOCATIONAL INSTITUTIONS
see also SCHOOLS
claims against, see SCHOOL-RELATED CLAIMS AND DEFENSES
cohort default rate, 6.4, 13.2.2.3.2
see also COHORT DEFAULT RATES
completion rates, 1.7.2, 13.3.3.3
correspondence courses, see CORRESPONDENCE COURSES
defined, 1.7.1.2
disclosure requirements, 1.7.2, 13.6.3.2.3
distance education, see DISTANCE EDUCATION PROGRAMS
eligibility for federal student aid, 1.7, 13.2.2
accreditation, 13.2.4
administrative capability, 13.2.2.3
admissions standards, 1.7.1.5
consumer information requirements, 1.7.2
financial responsibility, 13.2.2.4
gainful employment, 1.7.2, 13.2.2.5
generally, 1.7.1.1
misrepresentations, 13.2.2.2.4
program eligibility, 1.7.1.3
Program Participation Agreements, 13.2.2.2
regulations, selected text, Appx. B.4.1
state authorization, 13.2.3
FTC guides, 13.6.2.4
job placement rates, 1.7.2, 13.3.3.3
oversight, 13.2, 13.6.3.2.2
state regulations, Appx. E
proprietary trade schools, see PROPRIETARY INSTITUTIONS
recruiters, see RECRUITERS
school as lender
federally funded loans, see PERKINS LOANS
private loans, see PRIVATE LOANS
VOCATIONAL LICENSES
suspension or revocation for default, 9.6
VOLUNTEER SERVICE
see also PUBLIC SERVICE CANCELLATION
deferment eligibility, 4.3.5.2, 4.3.8
Perkins loan cancellations, 10.12
WAGE GARNISHMENTS
see also COLLECTION OF STUDENT LOANS
collection agencies, participation, 9.3.4
consolidation loans, effect, 7.2.2
DOE, DCIA garnishment, 9.3.2
defenses, 9.3.2.3
hearing rights, 9.3.2.5
maximum amount, 9.3.2.1
notice, 9.3.2.2
repayment in lieu, 9.3.2.4
DOE policy, 9.3.4
due process challenges, 9.3.5
guaranty agencies, HEA program, 9.3.3
differences with DCIA, 9.3.3.1
hearing rights, 9.3.3.2
loan rehabilitation, effect, 7.3.2
school-related claims, raising, 9.3.2.3, 13.7.2.1, 13.8.5.1
statute of limitations, 8.5.3.1
statutory provisions, selected text, Appx. A.5
regulations, Appx. B.5.3
WAIVERS
defenses, consolidation loan as, 8.5.4.4
federal benefits offsets, 9.4.3.2
loan obligations, see COMPROMISES
WEB RESOURCES
closed-school list, 10.3.2
collection complaints, 8.4.5.2
consolidation loan application system, 7.2.4.1
DOE forms, Appx. D
DOE policy guidance, Appx. C
DOE website, 1.12.2
Federal Student Aid Ombudsman, 1.12.1.1
NCLC
online materials, 1.2.1, 1.2.2, Appx. F
online version of treatise, 1.1a
Student Loan Borrower Assistance Project, 1.12.3, Appx. J
NSLDS, 1.9, 8.2.1
sample pleadings, Appx. F
Sargent Shriver National Center on Poverty Law, 1.2.3
school misconduct, developing case, 13.7.5
student assistance forms, Appx. D
student loan websites, Appx. K
type of loan, determination, 1.9
WONDERLIC TESTS
ATB testing, 10.4.2.6.4
WRITE-OFFS
see COMPROMISES