Oak Park Real Estate & Estate Planning Blog

Student loan debt is an enormous problem in the Chicago area and across the country. There are certain loan forgiveness programs that some debtors can rely upon if they meet the necessary requirements. In numerous cases of debtors who were defrauded by for-profit schools, a federal loan forgiveness program was supposed to come to the rescue. However, according to a recent article in The New York Times , that “government program meant to forgive the federal loans of cheated students has all but stopped functioning.” In short, tens of thousands of borrowers seeking relief from deceptive lending tactics under a “borrower defense” program are not getting the relief they were promised. Claims for Loan Forgiveness are “In Limbo” The student loan borrowers at the center of the article are those who assert that they “were victims of fraud, left with useless degrees and crushing debt.” Some of those borrowers went to Corinthian Colleges, a name that many consumers now associa...

If you are currently in default on your student loans , it is important to follow the news about the U.S. Department of Education’s (DOE) plans for debt collection . According to a recent article in Inside Higher Ed , earlier this month the DOE indicated that it “had awarded contracts to collect on defaulted student loans to two firms, Performant Recovery Inc. and Windham Professionals.” For a number of months now, consumer advocates and debtors have voiced concerns about the DOE’s debt collection practices, which some argue do not give consumers the opportunity to get back on track with their student loan payments. We want to say more about the DOE’s debt collection plans and to remind consumers about their rights under the Fair Debt Collection Practices Act (FDCPA). Debt Collectors Set to Makes Hundreds of Millions from New Contract There are numerous concerns about the DOE’s debt collection contracts with Performant Recovery Inc. and Windham Professionals. F...

You might have heard that certain students who took out student loans to attend a now-closed for-profit college could end up having the balance of their loans discharged. According to a recent article in Consumer Affairs , approximately 41,00 former students will benefit from a settlement involving Corinthian Colleges. On average, each student will receive relief in the amount of $6,500. Those tens of thousands of students who borrowed money to receive an education from Corinthian Colleges will see some of their student loan debt disappear. How did this settlement arise? Is Corinthian the only institution from which students can be eligible for student loan cancellation ? What students can be eligible for a refund from the settlement? Former College Students and Eligibility for Federal Student Loan Cancellation in Illinois In April, Illinois Attorney General Lisa Madigan’s office issued a press release informing former students—along with attorneys general from 44 states i...

When we think about unfair debt collection practices , most of us think of scenarios in which creditors assess exorbitant fees for late payments, or situations involving fraudulent debt collection measures. When we imagine the creditor in these scenarios, few Chicago residents think about nonprofit colleges and universities. However, the harmful actions of various for-profit colleges, which have led to massive student debt, have made national news over the last several years. As such, it should not come as too much of a surprise that nonprofit colleges also may be engaging in debt collection practices that involve the assessment of “whopping collection fees for unpaid tuition,” according to a recent article in the Chicago Tribune . What else do you need to know about the debt collection practices of colleges and universities when it comes to unpaid student tuition? Student Debt Collection: A Case Study The article discusses one student’s recent debt collection i...