Earlier this week, the White House announced a new initiative: The Student Aid Bill of Rights: Taking Action to Ensure Strong Consumer Protections for Student Loan Borrowers (http://tinyurl.com/qggwqdl). The fact sheet released by the White House indicates that “the President will sign a Presidential Memorandum directing the Department of Education and other federal agencies to work across the federal government to do more to help borrowers afford their monthly loan payments including: (1) a state-of-the-art complaint system to ensure quality service and accountability for the Department of Education, its contractors, and colleges, (2) a series of steps to help students responsibly repay their loans including help setting affordable monthly payments, and (3) new steps to analyze student debt trends and recommend legislative and regulatory changes.”
Among the steps outlined to implement these goals are the following: “Ensuring fair treatment for struggling and distressed borrowers by raising standards for student loan debt collectors to ensure that they charge borrowers reasonable fees and help them return to good standing” and “clarifying the rights of Federal student loan borrowers in bankruptcy.”
For those being harassed by student loan debt collectors or struggling to pay student loans, keep an eye on this space. Relief may be in sight. In the meantime, Chapter 13 Bankruptcy is still a useful option to manage burdensome student loan debt, as it allows the borrower to pay a minimal amount on the loan for a period of up to five years.
If you are considering filing for bankruptcy because of student loan debt, you will need an experienced attorney to evaluate your case. The firm of Laura Margulies & Associates, LLC has successfully handled thousands of cases in Maryland and Washington, D.C., many involving unique or novel issues. Please contact us today for a consultation at (301) 816-1600. Our website address is: www.law-margulies.com