Forty-five million borrowers are scrambling to figure out options for managing their federal student loans before repayments resume this fall. This article sets out new student loan rights: fresh starts for those in default; the SAVE repayment plan; lower interest charges; avoidance of school arbitration provisions; and easier paths to public service loan forgiveness, bankruptcy discharges, and five types of statutory loan cancellations.
Student Loans, Schools
Twelve Dramatic Changes Offering Relief for Student Loan Borrowers
This article describes new major relief for student loan borrowers: $10,000 or $20,000 for millions of borrowers, and added relief for those in public service, in default, with disabilities, attending specific schools, with private loans, or with IDR plans. New loan servicers and no more private debt collectors. The article links to more detail and sets out steps borrowers should take now to make the most of the offered relief.
Hidden Consumer Rights and Remedies Regarding Private Student Loans
Widespread misrepresentation about private student loans not being dischargeable in bankruptcy leads to significant consumer remedies. This article explains how to tell if a private student loan is dischargeable in bankruptcy, and sets out remedies where creditors misrepresent that a loan is non-dischargeable or continue collection after a bankruptcy discharges the loan. Other claims are listed against private student loan lenders.
New Student Loan Discharges, Restitution, and Payment Pause Extension
This article explains the implications two new student loan developments. A Navient settlement discharges on average $25,000 of debt for 66,000 private student loan borrowers and provides $260 restitution to 365,000 federal Direct Loan borrowers. The Department of Education has extended its suspension of federal student loan payments until May 1, 2022, with the balance accruing at zero percent interest.
Student Loan Servicers Now Subject to Borrowers’ State Law Claims
Student Loan Repayment Rights: Consumer Debt Advice from NCLC
Schools' Use of Mandatory Arbitration Now Sharply Curtailed; Loan Discharge Rights Expanded
New Student Loan Repayment Plan for Older Student Loans Available on December 17
New July Student Loan Rule Amendments: What Changes and What Does Not
New Defenses to Student Loan Repayment Based on School Misconduct and Closures
This article describes Oct. 28 Department of Education rules providing key new rights for student loan borrowers: arbitration limits, school-related defenses to loans, and strengthened closed school and false certification discharges.