Are you looking for a Fresh Start?

Posts by Evalena Labayen

Laws Changing For Student Loan Defaulters

The student loan debt crisis has already gripped the attention of courtrooms from bankruptcy court to state and federal court, but finally, it has gained traction among lawmakers on both sides of the aisle. In an unexpected allyship, Sen. Elizabeth Warren D-Mass and Sen. Marco Rubio R-Fla proposed a bill: “Protecting JOBs Act”. This bill…

Read More

Default student loan rates rising to 40% by 2023

A startling new report by Urban Institute, a progressive think-tank in Washington, estimated that in 5 years, 40% of student loan borrowers would be in default. In other numbers, it’s estimated that 44 million americans have student loans, and so 17.6 million students would default.  It’s not just private loans that are unwieldy, but also…

Read More

Judge Rules against DeVos for Corinthian College

In the case of the thousands of students defrauded by Corinthian College Inc., the Department of Education under DeVos tried to implement a new policy that would replace the Obama Administration’s “Borrower Defense to Repayment rule”. DeVos’s plan would prevent students from receiving a full discharge of the student loan debt they accumulated while receiving…

Read More

DOE no longer giving full discharge for defrauded cases

The U.S. Department of Education is passing an act that will make it harder for students to sue for-profit colleges for claims of fraud or misleading practices. As of July 1, 2019, this act would evaluate the students’ need for compensation based on their salary compared to their peers, instead of receiving a full discharge…

Read More

Four States Suing Navient, Government Agency In Bed With DOE

California is the fourth state to file a lawsuit against one of the government’s largest debt collecting agencies: Navient. California is the largest state to file a lawsuit against Navient, joining Pennsylvania, Washington, and Illinois. Navient is one of the eight largest debt collection services hired by the United States “to collect $1.4 trillion owed…

Read More

Department of Education Not Allowing Loan Forgiveness

Four senators are taking a stand against Betsy DeVos and the dysfunctional Department of Education when it comes to student loan forgiveness. Federal loans make up $1,331.7 billion of all student loan debt as of this year .1 Democratic Senators Tim Kaine, Sheldon Whitehouse, Tammy Duckworth, and Maggie Hassan sent a letter to Secretary DeVos…

Read More

Judges Considering Student Loan Bankruptcy

More bankruptcy judges are realizing that student loan debt decisions must be made in favor of the debtor. Student loan debt is the second highest consumer debt in America, but it is the hardest to reduce in court. The average student loan debt for a Bachelor’s degree is over $37,000 and does not include the debt adults accumulate…

Read More

Do Medical Bills Correlate with Bankruptcy Filings?

Elizabeth Warren, along with David Himmelstein, Deborah Thorne and Steffie Woolhandler, continue to face controversy over their paper published in the journal Health Affairs in 2005 and updated in 2009. This paper, based on surveys and testimonies from 1,800 Americans, estimated that 62% of bankruptcy cases are caused by medical bills. Warren’s paper opened a…

Read More

Tuition Free New York City Colleges

Hillary Clinton and Governor Andrew Cuomo signed into effect a law that provides free tuition to public colleges and universities in New York State. The requirements and stipulations makes me question whether “free” college tuition has seen achieved or if it remains out of reach. Any progress towards this goal is appreciated, but upon reading…

Read More

Student loan dischargeable debt

A simple internet search can discourage anyone from trying to file their student loan debt as dischargeable bankruptcy, but it is in fact a debt that can be resolved through bankruptcy law. Michelle Labayen has successfully discharged or reduced student loan debt for numerous clients. The debtor must prove that repaying their loans places an…

Read More

President Trump and Student Loan Debt

As a hopeful optimist, I looked at President-elect Donald Trump’s proposal for student loan debt. His plan is to increase the rate of repayment from 10% as in Revised Pay As You Earn (REPAYE) to 12.5% so the student can be out of debt in fifteen years opposed to twenty. Several websites and students worry…

Read More

President Trump on Mortgages

BIG tax cuts! That is the anthem of Trump’s mortgage plan for affordable housing. His appointed Secretary of Treasury Steven Mnuchin announced a cap on mortgage interest deductions that will overall benefit the wealthy more than the intended middle class. Ironically, this plan will cost the United States $96 million, paid for by foregone taxes.…

Read More

Supreme Court and Bankruptcy News

The Supreme Court faces a decision that could change Chapter 11 bankruptcy indefinitely.  In 2006, the Jevic Transportation Company was buyed out for $77.4 million by the private equity firm Sun Capital Partners.  Two years later, Jevic had to file for Chapter 11 bankruptcy because of too much debt. The bankruptcy put 1,785 drivers and…

Read More

Department of Education vs. Obama

Obama has become the poster boy for the Democratic Party, accomplishing universal health care, legalizing gay marriage, recovering a nation in an economic crisis, and solving countless other problems during his presidency.  One of the last issues he hopes to improve before leaving office is student loan reform.  He has gone after corrupt career training…

Read More