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Students seek debt relief from fraudulent loans

On Behalf of | Nov 16, 2017 | Chapter 7 Bankruptcy, Firm News

College students in Florida and elsewhere around the country often incur a large amount of debt while working toward their degrees. Unfortunately, some students obtained loans from schools that acted fraudulently. Recently, it was reported that more than 87,000 debt relief applications are pending at the nation’s Department of Education.

Some senators have asked the Secretary of Education to forgive these student loans, which is within the authority of the position. Many of the lawmakers are dismayed that the Secretary has not discharged any of these loans and are asking that she do what is right. Many of the students were duped by marketing ploys and entered into predatory loan agreements with schools no longer in existence.

Applicants for debt relief began seeing the discharge of loans during the previous administration. Critics stated that the process for relief took too long, yet they hoped the new administration would pick up the pace as they continued discharging the fraudulent loans. However, a national newspaper reported that over 10,000 claims are awaiting partial debt relief even though they have been recommended for approval. Some senators are lobbying for full relief for these approved claims.

The lawmakers have stated that many of these students have been left in situations where they either have a useless degree or didn’t receive one at all. This results in poor job prospects and an uncertain career future. On top of that, they are saddled with the burden of student loan debts.

No matter what type of debt consumers may have, many Florida residents may feel overwhelmed by the burden. For those seeking debt relief, it may be wise to contact a bankruptcy attorney. A knowledgeable lawyer can work with clients to evaluate their options and create a plan that will help reduce and/or eliminate their level of debt.

Source: The Washington Post, “Pressure mounts for Betsy DeVos to address the backlog of 87,000 student debt relief claims“, Danielle Douglas-Gabriel, Nov. 14, 2017

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