New federal rules that penalize colleges for excessive student loan defaults offer a powerful incentive for schools to educate students on the complexities of the federal student loan program, including the crucial fact that they can delay or make partial payments if they get into financial trouble, according to a New York Times editorial on Friday. Colleges with…
Archives for July 2014
More Than 1/3 of All Americans are Delinquent on Their Debt?
A study released today by the Urban Institute found that 35 percent of Americans have debt in collections, USA Today reported today. The study, which analyzed the credit files of 7 million Americans, found that Southern states especially stand out with the highest concentration of people delinquent. In 13 states — Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,…
WILL DETROIT MAKE IT AFTER BANKRUPTCY?
As reported on mlive by Mike Wilkinson of Bridge Magazine, serious questions remain as to whether Detroit will be able to survive its historic Chapter 9 Bankruptcy. Detroit has the distinction of the murder capital of the U.S. and is also the most populous U.S. city to ever seek bankruptcy protection. But, the real questions…
If a Creditor files a Claim against a Time Barred Debt, Is there a Violation of the Fair Debt Collection Practices Act?
Yes – According to at least one US Circuit Court in a recent opinion. As reported by Robin Miller of CBAR, in an important decision and a rare victory for consumers, the 11th Circuit Court of Appeals has held that a debt collector’s filing a proof of claim for a time-barred debt violates the federal…
The Sale of the Art Works held by the Detroit Institute of Arts Could Bring Less Than Half Collection’s Value
As blogged by the American Bankruptcy Institute and reported by Reuters, art expert Michael Plummer was hired by the Detroit Institute of Arts to evaluate the collection for purposes of selling it to raise money for the City of Detroit Chapter 9 bankruptcy proceeding. Mr. Plummer reported that the Detroit Institute of Arts collection may…
How Do the New US Department of Education Rules Affect the Loan Rehabilitation Program for FFEL and Direct Student Loans?
The new rehabilitation rules affect both FFEL and Direct Loans, including: 1. Direct Loan rehabilitation now requires a written agreement (this was true of FFEL before, but not Direct Loans); and, 2. There is a specified method for calculating reasonable and affordable payments using the 15% income based repayment (IBR) formula. Once you request rehabilitation,…
How Do I Get Information About My Mortgage in Michigan?
The Real Estate Settlement Procedures Act (“RESPA”) is a federal law that give you the right to get information about your mortgage loan through a Qualified Written Request addressed to the servicer. Under new rules effective January 2014, your servicer has to ackowledge your request within 5 days of recieving it and must respond within…