Student Loan News Update

Student Loan servicers will become  

student loan servicer under the new proposal

Student Loan News Update
student loan burden

by Education Secretary Betsy Devos.  Article in Forbes:

In May, DeVos announced that the Education Department would select one servicer to service all federal student loans, which represented a change from the current multiple-servicer system.

DeVos outlined four primary reasons:

    1. Ensure superior customer service
    2. Maintain borrower protections
    3. Protect taxpayers
    4. Increase oversight
 Normally, I am not big on monopolies, especially government ones.
But the current student loan servicers are falling below the mark.

 Student Loan Debt Problem Still Growing

From KBMZ webiste story:

According to figure compiled by Forbes, more than 44,000,000 Americans are working to pay off some kind of student loan, owing more than $1.3 trillion in student loan debt, which is $620 billion more than the total U.S. credit card debt. The average 2016 graduate has $37,172 in student loan debt. 

The existing resolutions, the income based repayment plans and so on, are NOT fixing the student loan debt problem, and it will not go away.

Win for Student Loan Discharge

Congrats to Waterman & Mayer, a Philadelphia law firm with a win in bankruptcy court on a suit to discharge student loan debt.

Chief Judge Eric Frank discharged all the federal student loans ($26,000) of Kristin Price, a single mother of three children.

It may sound unlikely, but Price, a healthy 29-year-old who works 20 hours a week in the field of work in which she obtained her degree, was able to discharge her student loans. It is usually assumed that student loans can be paid if the person is working in his or her field of study, but, in this case, with three children and expensive child care, the court ruled in her favor applying the much criticized, Brunner Test, to conclude that Price could not pay back her loan without undue hardship within the period of her original repayment plan.

Pressure To Lower Bar Exam Standards

Two bad guys?

From my favorite blog, Instapundit:

HIGHER EDUCATION BUBBLE UPDATE, LEGAL EDUCATION EDITION: California Considers Lowering Passing Score On July Bar Exam. “I’d like to thank the deans of law schools around the state who provided invaluable input.”
The tension is between two self-interested groups: Law deans who want a higher pass rate to help their applications and rankings, and the bar which wants a lower pass rate to ensure that there’s not competition that might — shudder! — drive down fees.
Greed.  Law schools make a fortune for what they charge, especially in light of what most law degrees are worth.  If you have one from the Ivy League, Stanford, University of Michigan, Virginia, that is one thing.  But the rest are grossly overcharging, being that I am filing bankruptcies for lawyers who are making !4$ per hour. Working. As lawyers.
Summary
Student Loan News Update
Article Name
Student Loan News Update
Description
Will the government changing to using one student loan servicer make a difference? Yes, student loan debt can be discharged in bankruptcy. The student loan big picture continues to worsen.
Author
Be Sociable, Share!
If you enjoyed this post, make sure you subscribe to my RSS feed!
Read previous post:
NCT And Me

Shout out to Susan Tompor of the Detroit Free Press                (click here) for...

Close