I’m collectively presenting a webinar this week for the ABI on the brand new DOJ procedures to permit the discharge of federal pupil loans.  The intent of the DOJ in reviewing pupil loans for discharge is to assist create a course of that enables:

• Readability, transparency and consistency
• Scale back burdens by simplifying the very fact gathering course of by way of a kind Attestation
• Enable a authorities stipulation to information alleging a full or partial undue hardship
• Open communication between events to scale back litigation burdens
• Courtroom should finally make a discovering, no matter steering

That is one thing that by no means used to exist.  I discovered pupil loans again within the Nineties representing Sallie Mae, ECMC, TERI, and USA Funds in lots of discharge instances introduced all through the State of Florida at each the trial and appellate degree.  It was an costly, time consuming course of, with little likelihood of success for the debtor.  Issues have modified with this new DOJ process.

Whereas that is presently just for these with Direct Loans, ED is popping out with comparable guidelines for the older FFEL loans the place ECMC will do the assessment and make the willpower to suggest a full or partial discharge.  For now, it’s key to consolidate earlier than submitting chapter to make sure ED is doing the assessment.  Additionally, ECMC usually opposes discharge, so I’m not as snug with it doing the assessment.  I assume it might boil all the way down to how they receives a commission if the mortgage is discharged.

You probably have questions on this new process, please give our workplace a name at (813) 258-2808, electronic mail information@christiearkovich.com or fill out the shape beneath.