With historically low unemployment rates, attracting and retaining top talent can be a challenge for employers. To distinguish themselves from the pack, many companies are considering tuition assistance programs to both...more
A district court judge recently reversed and remanded a well-known bankruptcy decision discharging a significant student loan debt. In the Southern District of New York, Judge Philip Halpern, reviewing the bankruptcy court’s...more
The Mississippi Supreme Court recently rejected federal preemption arguments relating to federally owned student loans. This follows other preemption rulings, as we’ve discussed here and here.
Mississippi’s attorney...more
Several states have recently ramped up their regulation of the student lending industry by passing laws requiring student loan servicers to be licensed in the state in order to operate there. Many of these state licensing...more
As we’ve been tracking for over a year now, courts across the country have addressed the significant question of whether the federal laws governing federally owned or guaranteed student loans preempt state laws placing...more
4/14/2020
/ Debt Collection ,
Department of Education ,
Disclosure Requirements ,
Federal Student Loans ,
Higher Education Act ,
Loan Servicer ,
Misrepresentation ,
Preemption ,
Private Student Loans ,
Public Service Loan Forgiveness program (PSLF program) ,
State Regulators ,
Student Loan Servicers Regulation ,
Student Loans
Like the country and economy at large, the COVID-19 pandemic is significantly impacting secondary education and the student lending industry. In response to the pandemic, colleges across the country closed their campuses,...more
Chief Bankruptcy Judge Cecelia Morris in the Bankruptcy Court for the Southern District recently reinterpreted Brunner’s “undue hardship” test and discharged over $220,000 in student loan debt. This opinion reflects a marked...more
The Fifth Circuit’s recent decision in Crocker v. Navient Solutions is a stark reminder to for-profit student lenders and servicers that bankruptcy caselaw continues to evolve relating to discharge. In Crocker, the Fifth...more
11/5/2019
/ Chapter 7 ,
Class Action ,
Consumer Bankruptcy ,
Consumer Financial Products ,
Consumer Lenders ,
Dischargeable Debts ,
Internal Revenue Code (IRC) ,
Loan Servicer ,
Payment Terms ,
Private Student Loans ,
Student Loans ,
Students
Federal law has long excepted student loans from discharge in bankruptcy in all but the rarest instances, recognizing the problems (and costs) associated with allowing borrowers to wipe out defaulted debts through a...more
In courts across the country, servicers are facing off against states and borrowers over the extent to which federal laws preempt state regulation of federal student loan servicers. Numerous states have stepped up their...more
]With the start of the new year, California has expanded protections for military servicemembers with student loans.
Student loans incurred by a protected servicember before entry into service have an interest rate cap of...more
The Trump administration is looking to stiffen the criteria for borrowers to obtain forgiveness of their student loans based on fraud. If enacted, this higher criteria would mark a significant shift for students who seek...more
As expected, student loans were a major issue in 2016, as the presidential election brought the issue to the forefront and regulatory scrutiny continued to rise. 2017 is now upon us, and the CFPB wasted no time getting the...more