A lawyer representing a Florida Coastal law grad with about $260,000 in federal student loan debt believes there is a good chance the U.S. Supreme Court will grant certiorari in the bankruptcy case.James Wilton of Ropes & Gray tells the US Law Week Blog that there is a circuit split on what constitutes an undue hardship that would allow federal student loans to be discharged in bankruptcy. The disparity is “exactly why we think” there is a good chance of a cert grant, Wilton said.The St. Louis-based 8th U.S. Circuit Court of Appeals applies a more flexible “totality of the circumstances” test while the Chicago-based 7th U.S. Circuit Court of Appeals applied a stricter test in the case of Wilton’s client, Mark Tetzlaff.“Unless you’re a quadriplegic from a car accident or you have Alzheimer’s disease” or another serious medical condition, “it’s going to be almost impossible to ever prove undue hardship in the 7th … [Read more...] about Florida Coastal law grad asking for discharge of $260K in federal student loans seeks SCOTUS review
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Updated: A bill to increase student loan limits that is intended to make it easier for students and their parents to get funding for college and graduate school in a private lending market that has been curtailed by a worldwide credit crunch passed the House of Representatives by a wide margin today. A companion bill has been introduced in the Senate.“The measure would give the Education Department temporary authority to buy existing student loans at a discount to give lenders more cash for new loans. It would also allow the education secretary to send federal money to certain guarantee agencies, allowing them to act as ‘lenders of last resort’ to make new federally backed loans,” reports the Los Angeles Times.However, some observers wonder whether the well-intentioned legislation will harm more than help students by encouraging higher debt loads and tuition increases, the newspaper notes. The bill would allow students who are dependents of their parents to … [Read more...] about House Ups Student Loan Limits: Blessing or Curse?
The Illinois House of Representatives and Senate have voted to override the veto by the state’s Republican governor of Senate Bill 1351, known as the Illinois Student Loan Servicing Rights Act. The override means that the new law will become effective on December 31, 2018. The bill was drafted by the office of Lisa Madigan, the Democratic Illinois Attorney General, and had strong Democratic support in the state’s House and Senate.The Act includes the following key provisions:Licensing. The Act makes it unlawful “for any person to operate as a student loan servicer in Illinois except as authorized by this Act and without first having obtained a license in accordance with this Act.” For purposes of the Act, a “student loan” includes federal and private student loans, including loans to refinance a student loan. The Act contains exclusions for various types of entities, such as federal- or state-chartered banks, … [Read more...] about Illinois lawmakers override governor’s veto of student loan servicing bill
Home In-Depth Reporting Rising law school tuitions prompt ideas for… MIDYEAR MEETING REPORT By Lee Rawles April 2018 Photography by The Canadian Press Images/Michael Desjardins Could reforming federal student-loan programs be a way to halt the skyrocketing cost of attending law school? At the 2018 ABA Midyear Meeting, the American Bar Foundation gathered a panel to discuss the issue in “The Perennial (and Stubborn) Challenge of Cost, Affordability and Access in Legal Education: Has It Finally Hit the Fan?” Barry Currier of the Section of Legal Education and Admissions to the Bar at “The Perennial (and Stubborn) Challenge of Cost, Affordability and Access in Legal Education: Has It Finally Hit the Fan?” Photography by The Canadian Press Images/Michael Desjardins “If I have to put the blame for the title of this panel on any one place, I would put it on these student loan programs and the fact that they are basically unregulated, really, in terms … [Read more...] about Rising law school tuitions prompt ideas for federal student loan reform
Home Web First Student loan forgiveness: Great in theory,… Law Schools By Jason Tashea Posted February 27, 2019, 6:30 am CST Image from Shutterstock.com. To afford law school, Kyle Ingram borrowed $120,000. Saddled with this significant loan balance at age 27, he sought debt forgiveness through the Public Service Loan Forgiveness Program. Established in 2007, the PSLF Program allows people with federally backed loans to work for a qualifying government or nonprofit public service organization while making payments under one of four federal qualified repayment programs for 120 months. As such, Ingram says he passed up more lucrative opportunities to qualify for the program. Since graduating from the University of Oregon in 2012, Ingram, who’s based Washington, D.C., has worked as an attorney for various federal agencies and currently makes an annual salary of $84,000. Last year, Ingram watched the first cohorts of PSLF applicants file for debt forgiveness. The results … [Read more...] about Student loan forgiveness: Great in theory, murky in practice