New Research by the Myvesta Foundation Focuses on Options That Eliminate Some Private Student Loans Quickly and for Good
Raleigh, North Carolina (PRWEB) July 30, 2013 -- The burden of crushing student loan debt is only growing and many are finding it confusing trying to figure out what to do to get their private student loan debt affordably under control. Recent research has focused on a search for good tools consumers can utilize to deal with problem student loan debt.
Consumer advocate Steve Rhode, with the Myvesta Foundation at GetOutOfDebt.org, has published the results of his research looking at private student loans discharged in 2012.
This data was part of a larger study of Sallie Mae student loans included in bankruptcy adversary proceedings in 2012.
The recent research project found an often overlooked legal remedy available for problem private student loan debt that even some bankruptcy attorneys might not deal with often. These solutions include a way to partially or fully discharge private student loan debt in bankruptcy without tax liability.
There is tremendous amount of misinformation floating around about dealing with student loans and lately the influx of for-profit and non-profit purported student loan assistance companies that offer alleged help has only confused consumers even more.
A recent report by the National Consumer Law Center demonstrated the dangers of these new student loan assistance programs which often do not appear to provide the best advice for the consumer.
"Many people are still under the misperception that private student loan debt can never be discharged in bankruptcy. That's simply not true. A close inspection of recent bankruptcy filings shows It certainly can in some situations with some private student loans. More consumers should know about these solutions which are currently available," says Rhode.
Rhode's recent research on the type of private student loans that can be swiftly discharged in bankruptcy shows consumers exactly what to look for and how to identify these types of loans so they can discuss this issue with their local bankruptcy attorney when they seek assistance.
More information can be found in the article These Private Student Loans Can Be Easily Discharged in Bankruptcy.
Rhode states, "People will be surprised to learn these private student loans were even issued or serviced by large entities in the private student loan business who are most certainly aware the loans can be eliminated in a consumer bankruptcy." The private student loans at the heart of this were used typically for schools that were not accredited at the time of attendance.
Consumers with these types of student loans may need to file an adversary proceeding along with their bankruptcy filing but court documents show examples of the private student loans being fully discharged in a consumer chapter 7 or chapter 13 bankruptcy filings.
Specific examples of discharged student loans can be seen here.
Even if a school does not neatly fit the niche above, parts of private student loans may be partially discharged, the recent research shows, if part of the debt was not used for a "qualified higher education expense."
This would apply to private student loan money paid for:
- Discretionary college costs, like those associated with intramural sports teams or sororities and fraternities
- Transportation expenses, such as gas for those who commute to school or airfare to fly home for the holidays.
- A laptop or computer isn’t considered a qualified education expense unless it is required by the college or for a course.
- Dorm room supplies like the bed sheets and a mini-fridge, don’t qualify, unless they’re charged to the student by the university.
- Off-campus housing (rent and food) that exceeds the estimated off-campus expenses published by the university.
- Textbooks are qualified education expenses, but a study guide not included on the required course list may not be.
- Furnishing an apartment is not part of room and board.
- SAT or ACT testing.
- School sponsored travel.
- Internet access not billed through the school.
- Workshops at school if not enrolled.
More information on this subject and the research can be found here.
Steve Rhode, Myvesta Foundation, http://GetOutOfDebt.org, 919-671-9595, [email protected]
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