A lot was covered in just 20 minutes. From Presidential ability to forgive, sueing Congress for bankruptcy protection, and of course, the CARES act. Watch and feel free to add comments. The post Student Loan Talk – General All Around Discussion appeared first on The Student Loan Lawyer - Attorney Joshua Cohen ..read more

Today I answered questions regarding the Stimulus Package as it relates to student loans. The post COVID-19 Stimulus Package: Video Q&A appeared first on The Student Loan Lawyer - Attorney Joshua Cohen ..read more

What is an FFEL Loan? An FFEL (Federal Family Education Loan program) loan is a federal student loan that was originated (funded) by an entity other than the US Education Department (USED). It could be a bank or a credit union (Sallie Mae, Chase, Wells Fargo, etc.), or even a guarantee agency (VSAC, Great Lakes, MOHELA, etc.) The loan is guaranteed (insured) by USED, which is what makes it a Federal student loan. When the loan is in good standing, you will receive bills from the lender or a servicer working for the lender. If you default, the loan is transferred to a guarantee agency (unless i ..read more

What is a Perkins Loan? A Perkins loan is money given by your school. It is considered a Federal student loan because the money was given to the school by the US Education Department (USED). The school lends the money, owns the loan, may hire a servicer to collect when the loan is in good standing and may hire a debt collector if the loan defaults. The school can also sue defaulted borrowers. Schools that have too many defaulted Perkins could lose the program, at which point, all Perkins loans are turned over to USED. Stimulus Help? Unfortunately, the stimulus package does not offer any protec ..read more

What is a Direct Loan? A Direct Loan means the money was borrowed Directly from the US Education Department (USED). No middleman. The loan will always be held by USED. When in good standing, a servicer helps USED collect by sending bills and offer affordable payment plans and/or forbearance and deferments. When in default, a debt collector helps USED collect through various communications and also helps with wage garnishments and rehabilitation. Stimulus Help? Congratulations! Your loans are protected with the Stimulus Package! Here’s how: Interest is reduced to 0% The rest depends on the stat ..read more

The stimulus package has lots of facets, including student loan protections. The question you might be asking is, “How will it help me, the student loan borrower?” The real question should be DOES it help you, the student loan borrower. Because guess what, the stimulus does not help all student loan borrowers. At the bottom of the page, you’ll see links based on your loan types. Click the appropriate loan to learn what, if any, protection you get from the stimulus package. If you know what kind of loan you have, scroll to the bottom of the page. If you’re not sure, read on. Determining Your Lo ..read more

What is a Private Student Loan? A private student loan is a loan originated by any bank, credit union, or even a guarantee agency. It is NOT insured by the US Education Department (USED). And of course, it is not originated by USED. It’s no different than any other loan you would get from a bank, with one major difference – it is not necessarily dischargeable in bankruptcy. The promissory note will often state it is a “student loan” to be used for educational expenses, which includes tuition and living expenses. Many contain a statement that it is not dischargeable in bankruptcy. Often a co-si ..read more

If you’d like to read some specifics discussed in this video, please check out the blog for those with loans in good standing or the blog regarding defaulted loans. The post Covid-19 Update Video appeared first on The Student Loan Lawyer - Attorney Joshua Cohen ..read more

Today, March 25, 2020, the US Education Department (USED) rolled out protections for defaulted loans. It’s quite simple. No more collection activity on defaulted loans held by USED. As I said in my previous post on this subject, loans held by USED are Direct Loans and some defaulted FFEL loans that have been turned over to USED. Any defaulted FFEL loans still with a guarantee agency, like ECMC, Trellis, USAF or others, is not covered by what I’m about to share. The following collection conducts ceases: Wage garnishment Social security offset Tax refund offset Collection calls and letters attem ..read more

Let’s get right to the point. We’re all at a place of flux, as are our finances. The main question, what do to with student loans now that there are things being suggested, ordered, and such. Let’s clear the clutter and state exactly what is going on as of today – March 23, 2020. Federal Loans Only Any changes I mention below are for Federal loans only. Private lenders can continue to do as they see fit. Lower Interest Rates Not so fast. This only applies to NEW school loans such as Staffords, Perkins, or PLUS loans. It does NOT apply to new consolidation loans. The interest rate on consolidat ..read more