STUDENT DISCHARGE THROUGH BANKRUPTCY HAS ARRIVED!
As of November 17, 2022, The US Department of Education and the Department of Justice have combined forces to agree to a plan to resolve many student loan discharge cases brought through a bankruptcy process called an adversary proceeding. Who qualifies?
- People who are in a pending bankruptcy on or after November 17, 2022. If you received a discharge prior to that, you would need to file a new bankruptcy case to qualify.
- People who have made a good faith effort at paying the loans in the past. That could mean you were part of an income contingent plan, or that you did not pay anything if you could not afford to do so!
-. People who are at or close to the IRS National Standards for disposable income on a monthly basis:
https://www.irs.gov/pub/irs-utl/national-standards.pdf
In other words, if you have less than $200-$300 left over per month after paying for your necessities, you likely will qualify! But even if you extra money left over to make your student loans, you might still qualify for a partial student loan discharge.
- This discharge would affect PUBLIC/Government student loans, not private student loans, but the fact that you have private student loans that would need to be repaid will help reduce disposable income and help you qualify for the public student loan discharge.
While this program exists right now, it may end in 2024 if there is a change in administrations, so take advantage of this opportunity while you can!
What will you need to get started?
1. Log into this site and print out your account/payment history as a PDF:
https://nsldsfap.ed.gov/
2. Collect pay stubs for the past 2 months, along with bank statements.
3. Grab your credit report and save it as a PDF:
www.annualcreditreport.com
Contact us now at 303.630.9641 so we can go over your student loan debt options in detail, or contact us with our form below.
- People who are in a pending bankruptcy on or after November 17, 2022. If you received a discharge prior to that, you would need to file a new bankruptcy case to qualify.
- People who have made a good faith effort at paying the loans in the past. That could mean you were part of an income contingent plan, or that you did not pay anything if you could not afford to do so!
-. People who are at or close to the IRS National Standards for disposable income on a monthly basis:
https://www.irs.gov/pub/irs-utl/national-standards.pdf
In other words, if you have less than $200-$300 left over per month after paying for your necessities, you likely will qualify! But even if you extra money left over to make your student loans, you might still qualify for a partial student loan discharge.
- This discharge would affect PUBLIC/Government student loans, not private student loans, but the fact that you have private student loans that would need to be repaid will help reduce disposable income and help you qualify for the public student loan discharge.
While this program exists right now, it may end in 2024 if there is a change in administrations, so take advantage of this opportunity while you can!
What will you need to get started?
1. Log into this site and print out your account/payment history as a PDF:
https://nsldsfap.ed.gov/
2. Collect pay stubs for the past 2 months, along with bank statements.
3. Grab your credit report and save it as a PDF:
www.annualcreditreport.com
Contact us now at 303.630.9641 so we can go over your student loan debt options in detail, or contact us with our form below.
