Author Archives: Administrator

Statute of Limitations for Federal & Private Student Loans

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I often asked this question about statute of limitations on student loans.

This is how the discussion usual goes, whether your loans are federal student loans or private student loans. There is distinction which is huge, as the statute of limitations for federal student loans and for private student loans are completely different.

Federal Student Loans

The bad news: Due to changes in federal laws in 1998 and 2005, collection on federal student loans now have no statute of limitation and — with very limited exceptions — can no longer be erased though bankruptcy.

The good news: There are many, often flexible, options available for student loan resolution. Depending on the specifics of the situation, student loan borrowers may be eligible for programs that offer extended repayment periods, modifications that are income-sensitive (income based repayment or income contingent repayment, or graduated (starting small and rise over time). Some plans also offer possibility of “rehabilitating” a defaulted loan, so that some or all negative information about the loan is expunged from the borrower’s credit report if certain criteria are met.

Several federal and state agencies offer programs to help you cancel or reduce all or a portion of your student loan debt. Student loan forgiveness programs involve you making and honoring a long term commitment to teaching, nursing, or military service. To learn about some of the specific forgiveness programs available and how you can apply, visit the Federal Student Aid Web site.

Private Student Loans

Private student loans have entirely different rules for statutes of limitations. Unlike federal student loans, private student loans are subject to state’s statute of limitations for taking legal action to collect on written contracts. Once the statute of limitations expires, you can raise the statute of limitations as a defense, if the creditor attempts to take legal action to collect on the debt. However, just because the statute of limitations passes does not mean that a creditor or collection agent cannot try to collect on the debt. If you make a payment on a debt whose statute of limitations has passed, you can bring an expired debt back to life.

The statute of limitations for a written contract no longer apply if the creditor or collection agency sues you, before the statute of limitations expires, and obtains a judgment against you. If that happens, you will be subject to wage garnishments, bank levies, and liens.The statutes of limitations start running 30 days after your last payment on the debt. If you think that the statute of limitations for a private student loan debt is about to expire, I encourage you to consult with an attorney in your area to discuss the implications of an expired statute, and what actions you need to avoid to prevent the statute of limitations from being tolled or restarted.

New Student Loan Laws

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Today, the Obama Administration announced it is taking steps to increase college affordability by making it easier to manage student loan debt. The announcement is part of a series of executive actions to put Americans back to work and strengthen the economy because we can’t wait for Congressional Republicans to act.

The Administration is moving forward with a new “Pay As You Earn” proposal that will reduce monthly payments for more than one and a half million current college students and borrowers. Starting in 2014, borrowers will be able to reduce their monthly student loan payments to 10 percent of their discretionary income. But President Obama realizes that many students need relief sooner than that. The new “Pay As You Earn” proposal will allow about 1.6 million students the ability to cap their loan payments at 10 percent starting next year, and the plan will forgive the balance of their debt after 20 years of payments. Additionally, starting this January an estimated 6 million students and recent college graduates will be able to consolidate their loans and reduce their interest rates. …

Current law allows borrowers to limit their loan payments to 15 percent of their discretionary income and forgives all remaining debt after 25 years. However, few students know about this option. Students can find out if they are currently eligible for IBR at www.studentaid.ed.gov/ibr. Last year, the President proposed, and Congress enacted, a plan to further ease student loan debt payment by lowering the IBR loan payment to 10 percent of income, and the forgiveness timeline to 20 years. This change is set to go into effect for all new borrowers after 2014—mostly impacting future college students.

Today, the Administration is proposing to offer even more immediate relief to many current college students by giving them the chance to limit loan payments to 10 percent of their discretionary income starting in 2012. In addition, the debt would be forgiven after 20 years instead of 25, as current law allows. For many who struggle to manage their student loan debt – including teachers, nurses, public defenders and others in lower-paying jobs – these proposed changes could reduce their payments by hundreds of dollars each month. Overall, this proposal would provide an estimated 1.6 million borrowers with more manageable monthly payments.
The Administration is also planning to offer student borrowers the chance to better manage their debt by consolidating their federal student loans. Today, approximately 5.8 million borrowers have both a Direct Loan (DL) and a Federal Family Education Loan (FFEL) that require separate payments, which makes them more likely to default. To address the needs of these borrowers, the Administration will allow borrowers the convenience of a single payment to a single lender for both loans. Borrowers who take advantage of this consolidation option, which begins in January, would also receive up to a 0.5 percent reduction in their interest rate on some of their loans, which means lower monthly payments that would save hundreds of dollars in interest. Eligible borrowers will be contacted by their federal loan servicer early next year with information on how to consolidate.

These changes carry no additional cost to taxpayers.

CoCo Brother Team Up

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Corey “CoCo Brother” Condrey Teams up with NCES

Last year November, Corey “Coco Brother” Condrey teamed up with National Credit Educational Services on Atlanta and Company morning show to present “A Night of Inspiration” at the Atlanta Civic Center. Take a look at how the show went.

Presented to you by: Corey “Coco Brother” Condrey from the Coco Brother Live show on 102.5 My Praise Atl

Samuel – GA

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George will attempt to downplay it, but his commitment and genuine caring is something that cannot be quantified in dollars. I spoke with someone about the price of the services provided and I explained to them that you get so much more than that.

You have people in your corner who recognize that there are a number of talented, motivated people who simply have not been provided with the information needed to battle the credit agencies . There are so many so called “ credit counselors ” that do not have your best interest at heart. Because of this, many who have been in this situation have become so apprehensive, and you find it hard to believe that good things can happen and that they will be sustained.

The staff, and George in particular spend time providing the information, motivation encouragement, and the passion that he displays is evident when you speak with him. I can honestly say that Mr. Cole “GENUINELY WANTS TO SEE PEOPLE SUCCEED AND LIVE THE BEST LIFE POSSIBLE”.  I have been overwhelmed by the progress that has been made.

I am still trying to come to terms with the fact that I am able to qualify for a home in areas/locations that I thought were either unattainable for that I would have to wait until old age! I have been so impressed with the level and service of dedication that I myself, have decided to become an agent. You do not understand how deeply negative financial situations can affect you until you begin to come out of them.  Seeing the look of relief on the faces of my fellow colleagues once they have spoken to George, is absolutely priceless.

I see this service as a way to save lives of people who may feel that they have nowhere else to turn, and are embarrassed by their current situation. Many people are succumbing to the pressure of this economy by physically harming themselves, family members, and others. I am on a mission to help as many as I can. By not having to worry every waking hour or beating myself up for past transgressions, I am able to fully focus on helping those that I have been called to help by lending my talents and energies to designing programs that allow people to become self-sufficient, productive members of society who will understand the importance of helping others and giving back.

Samuel

Samuel –

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I have only been working with George for less than 2 months and for the first time in a long time I have hope.  I had gone to so many people for advice, and I always felt like they had their own agendas and were giving me the runaround.  Both George and Danesha have answers all my questions with both detail and respect. They also helped to ease my sense of embarrassment, by informing me that they have assisted Dr.’s, lawyers, and other professionals have encountered the same difficulties. I know I have the ability to make positive changes, but unfortunately some opportunities can be hampered by damaged credit.  It felt so good to have interviews this month and know that my score has already dramatically increased.  I recommend this service to anyone feels that they have no hope.  These people really do care!!!  You will not be disappointed.

Samuel