Boston Student Loan Lawyer

Law Office of Adam S. Minsky

6 Student Loan Forgiveness Updates For 2024

| Articles Current Events Loan Forgiveness Policy & Reform

The Education Department has approved $167 billion in student loan forgiveness since 2021, according to data officials released in May. At least 4.75 million borrowers have benefited.

President Biden’s initial mass student debt relief plan, which would have wiped out up to $20,000 in federal student loans for eligible borrowers, was struck down by the United States Supreme Court last year. But the administration has still managed to enact billions in debt cancellation through a series of improvements, regulatory changes, and waivers associated with existing loan forgiveness plans.

Here’s an overview of the relief approved so far, and what borrowers should know as some initiatives are ongoing.

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Student Loan Lawsuits Increase — When To Seek A Student Loan Lawyer

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Increasingly, private student loan companies are stepping up collections activities in Massachusetts against borrowers who are in default on their private student loans, including by filing lawsuits against borrowers in Massachusetts state courts. As a result, many borrowers facing collections lawsuits are looking for a student loan lawyer for counsel or representation.

Federal student loan collections activity remains paused due the ongoing Covid-19 moratorium. The student loan pause has suspended most federal student loan payments and interest and stopped collections activity since March 2020. That relief is currently set to end later this summer.

But private student loans are not covered by this federal debt relief. And unlike federal student loans, private student loan lenders typically must resort to a collections lawsuit in state court to try to force a borrower to pay on an unpaid loan. That’s because private lenders do not have the same administrative powers that federal student loan lenders do, such as Administrative Wage Garnishment (garnishing wages without a court order) or Treasury Offset (which can seize a borrower’s federal tax refund or a portion of Social Security benefits). Private student loan lenders need a judgment, and to get a judgment, they have to file a lawsuit.

Here’s what’s going on.

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Student Loan Forgiveness Updates And Other Critical Relief Initiatives

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There’s a lot going on these days regarding student loan forgiveness, student loan repayment, and other relief for borrowers. Here’s an overview as of November 21, 2022:

  • The Limited PSLF Waiver ended on October 31. But the Education Department and MOHELA, its contracted PSLF loan servicer, are still processing applications. And PSLF borrowers who missed the deadline may still be able to benefit from the IDR Account Adjustment initiative.
  • President Biden’s one-time student loan forgiveness initiative (which can discharge up to $20,000 in government-held federal student loans for qualifying borrowers) remains blocked by federal courts. The Education Department has taken down the application in response to court orders. The legal dispute will likely end up at the U.S. Supreme Court.
  • The Biden administration is implementing several automatic cancellation initiatives through the Borrower Defense to Repayment program.
  • There are discussions about a possible extension of the ongoing student loan payment pause beyond the December 31 deadline in response to the legal battles over Biden’s one-time cancellation plan. However, there is nothing definitive at this time.
  • The Justice Department released new guidance that may make it easier for some borrowers to discharge their student loans in bankruptcy.
  • The Biden administration will be implementing the new IDR Account Adjustment initiative by the summer of 2023. Millions of borrowers may be able to advance their progress towards loan forgiveness under this program.
  • The Education Department is developing a new income-driven repayment (IDR) plan that could be more affordable than the current IDR options for at least some borrowers. Details are sparse right now, but we should have more information in the coming months.
  • New regulations governing Public Service Loan Forgiveness (PSLF), the Total and Permanent Disability (TPD) Discharge program, and Borrower Defense to Repayment are set to go live by July 2023.

Lots going on these days for student loan borrowers. Check back for updates, or follow me on Forbes.com.

Sued By A Student Loan Lender? 4 Massachusetts Student Loan Lawsuit Tips

| Articles

As the economy begins to reopen and state courts start to resume operations, more debt collectors are filing private student loan lawsuits against borrowers in default this year. If you’re facing a private student loan lawsuit, don’t panic. Here are some key tips.

Student Loan Lawsuit: Who Is Suing You?

Your first task is to figure out who sued you, and whether you recognize the student loan that is the subject of the suit. It is common for borrowers to have many different student loans. Some may be federal student loans, and others may be private student loans. But federal student loan lenders rarely file collections lawsuits in state court because they have other collections powers available that may make litigation unnecessary. Furthermore, federal student loan payments and collections are currently paused through September, anyway.

To make matters even more confusing, private student loan lenders often outsource operations and servicing to third-party contractors. Sometimes, they sell or transfer your student loan to a new loan holder. So understanding who filed the lawsuit, and what specific loan account is the subject of the suit, is a critical first step. Some of the most recent student loan lawsuits in Massachusetts have been filed by National Collegiate Student Loan Trust and Massachusetts Educational Financing Authority (MEFA).

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Biden Extends Student Loan Moratorium to September 30, 2021

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On January 20, 2021, President Biden signed an executive order extending pandemic-related student loan relief to September 30, 2021. That relief was originally set to expire on January 31, 2021.

Here’s what you need to know:

  • All payments, interest, and collections on government-held federal student loans will continue to be suspended through September 30, 2021.
  • The relief only applies to government-held student loans — not commercially-held FFEL loans, Perkins loans, or private student loans.
  • The U.S. Department of Education confirmed that the months of suspended student loan payments will continue to count towards loan rehabilitation and loan forgiveness programs, including Public Service Loan Forgiveness, for those who are otherwise meeting all eligibility criteria.
  • President Biden suggested that the moratorium could be extended further, although a decision on that would be unlikely until much closer to September 30, and will likely depend on economic and pandemic conditions at that time.
  • Additional student loan relief measures have, so far, not been included in new federal stimulus proposals. That could change as work on a new stimulus package continues in Congress. In addition, lawmakers could introduce new student loan reform measures through separate legislation, a prospect that the Biden administration has suggested.

Student Loan Pandemic Relief is Extended To End of The Year

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Earlier in August, President Trump signed an executive memorandum to extend pandemic-related student loan relief, which was previously scheduled to expire on September 30, 2020. The President’s executive action extends this student loan relief to December 31, 2020.

Here’s what you need to know:

  • All payments, interest, and collections on government-held federal student loans will continue to be suspended through December 31, 2020.
  • The relief only applies to government-held student loans — not commercially-held FFEL loans, Perkins loans, or private loans.
  • The Department of Education recently confirmed that the months of suspended student loan payments will continue to count towards rehabilitation and loan forgiveness programs, including Public Service Loan Forgiveness, for those who are otherwise meeting all eligibility criteria.
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Coronavirus Student Loan Updates

| Articles Current Events

Student loan borrowers — in particular, federal student loan borrowers — do have some options for managing student loans during this time of hardship. Start assessing your situation and making a plan of action.

As Congress and the President work towards providing economic relief, we will do our best to stay on top of the latest developments. You can check back here periodically, as well as Attorney Minsky’s Forbes page, where he frequently posts articles on breaking developments. You can also follow Attorney Minsky on Twitter, LinkedIn, and Facebook.

Here is the most up-to-date information we have on various student loan protections enacted in response to the COVID-19 Pandemic:

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Do You Know About Temporary Expanded Public Service Loan Forgiveness?

| Articles Current Events Income-Driven Repayment Loan Forgiveness Policy & Reform

Public Service Loan Forgiveness (PSLF) is a program that can allow federal student loan borrowers to get their federal loans forgiven after 120 “qualifying payments.” A qualifying payment is a payment made on a Direct federal student loan under an income-driven repayment plan (or the 10-year Standard repayment plan) while working as a full-time employee for a domestic public or 501(c)(3) nonprofit organization.

Because of the complexity of the Public Service Loan Forgiveness program, and the fact that many student loan servicers did a poor job communicating the program’s requirements, many student loan borrowers thought they were making progress, but were not. If a borrower made a payment on the wrong type of federal loan, or made payments under a non-qualifying repayment plan, they may not be eligible for loan forgiveness.

Congress recently passed a legislative fix to try to address some of these peculiarities. This new program is called Temporary Expanded Public Service Loan Forgiveness, or TEPSLF. TEPSLF is somewhat limited, and it has some serious flaws. But here’s how it works.

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8 Big Ideas to Fix Student Loans

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There is currently $1.6 trillion in outstanding student loan debt. That figure has nearly doubled over the course of the past 10 years. 44 million Americans carry student loan debt, and one in four of those borrowers are struggling with their payments. Millions of student loan borrowers are putting off critical life decisions such as home purchases, marriage, having children, and saving for retirement.

The scope of the problem is only aggravated further by a sprawling and dysfunctional student loan system, skyrocketing higher education costs, uniquely restrictive rights and options for borrowers, and poor government oversight.

Can the system be fixed? Yes. Here’s how.

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