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The 2015 federal budget is proposing deep cuts to the Public Service Loan Forgiveness Program. It’s time to make your voice heard.
The Public Service Loan Forgiveness Program allows federal student loan borrowers to wipe out these loan balances after 10 years if they work for a qualifying public service employer.
Qualifying employment is any employment with a federal, state, or local government agency, entity, or organization or a 501(c)(3) not-for-profit organization. Certain private not-for-profit employers may be eligible as well if it provides certain public services.
For the purpose of PSLF, it doesn’t matter what type of employment you perform with the organization. That means the Chief of Neurosurgery at UCLA Medical Center will qualify for PSLF, but so will the janitor at City Hall.
Direct Loans and Direct Consolidation Loans are the only federal student loans eligible for PSLF.
How The 2015 Federal Budget Will Impact Public Service Loan Forgiveness
The President’s 2015 budget will limit Public Service Loan Forgiveness to $57,500. That doesn’t seem to be a problem at first blush because the number corresponds to the maximum federal loan amount that an undergraduate can take out. But look deeper and you’ll see the problem.
Many of the positions with public service employers require (or at least strongly encourage) graduate educations. Teachers, doctors, lawyers, accountants and social workers are just some of the people who have graduate degrees. With the maximum amount of federal student aid for graduate degrees capped at $138,500 (including the $57,500 in undergraduate limits), it’s easy to see that the most highly-educated professionals will no longer be eligible for PSLF under the proposed 2015 budget.
Those Changes Will Impact Who Goes Into Public Service
Many highly employed people choose public service in part because of the ability to get relief from federal student loan debts after a decade of service. They sacrifice a good chunk of their prime earning years for the public good, and many remain in public service once their decade is completed.
If PSLF is limited, those with graduate degrees won’t find public service quite as compelling. They’re more likely to opt for better-paying jobs in the private sector, which will hurt our public service infrastructure.
At the same time, those who are already in public service jobs – teachers, medical personnel, and other important professionals – are going to lose the benefit of the bargain they struck when they took their jobs. They have been working at wages below the private sector with the expectation that they’ll be eligible for federal student loan relief down the line. For many, that simply won’t be the case.
How You Can Help
There’s an online petition as whitehouse.gov to support those who work to help you. Click here and let your voice be heard.
You should also get in touch with your elected representatives and let them know that you oppose any attempts to limited PSLF.
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Protecting Your Assets In A Chapter 7 Bankruptcy Filing There are two main goals in filing a chapter 7 bankruptcy. The first goal is to eliminate as much debt as possible in order to get a fresh start. The second goal is to protect either all or as much of your personal property as possible+ Read MoreThe post Protecting Your Assets In A Chapter 7 Bankruptcy Filing appeared first on David M. Siegel.
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Jacoby & Meyers Bankruptcy, the “national law firm” formed in 2012 by Jacoby & Meyers (the personal injury lawyers) and Macey Bankruptcy Law PC (the firm that operated for years under the name Legal Helpers), has been forced into Chapter 7 bankruptcy by a group of creditors including LegalZoom (the self-help folks) and a number of lawyers.
The firm’s website now lists a number of other law firms that will help clients by taking over their cases.
Goodbye and thanks for all the fish, as the saying goes.
If you’re a client of Jacoby & Meyers Bankruptcy, there are a few things you need to know to avoid being stranded.
You Have A Right To Choose Your Own Bankruptcy Lawyer. It’s nice that J&M has transferred your file to another lawyer who will allegedly honor all fees paid, but how do you know if this is a good bankruptcy attorney? I’m not knocking the lawyers who are taking over the cases, but it’s up to you – not J&M – to pick who is going to represent you.
Most States Prohibit Nonrefundable Fees. If you paid J&M any money towards your bankruptcy case and it hasn’t been filed yet, you may have the right to get your money back. The reality is that you’ll need to file a Proof of Claim in the firm’s bankruptcy case and may never see a dime of it back, but that shouldn’t stop you from filing your claim.
Even If Your Case Has Been Filed, You Can Get A New Lawyer. In a Chapter 7 case, you can get a lawyer for the meeting of creditors as well as any post-filing work by paying a modest amount of money. For Chapter 13 cases, you can get a new lawyer who will be paid through your Chapter 13 Plan. If your Jacoby & Meyers bankruptcy lawyer was going to get paid through your Chapter 13 Plan, you or your new lawyer can object to the claim and ensure they get nothing more than what you’ve already paid.
If Your Case Has Been Filed, Jacoby & Meyers Is Still Responsible Until The Judge Says So. Once your case is filed, your lawyer is obligated to represent you. The only way they get out from under that responsibility is if a judge allows the lawyer to withdraw. It’s unlikely that someone from Jacoby & Meyers Bankruptcy is going to show up in court with you, but if that’s the case then they’re going to be facing court sanctions and ethical problems to boot.
Ultimately, You Need To Take Control. Jacoby & Meyers Bankruptcy is still your lawyer if your case has been filed. And if not, you can either opt for one of the new firms or find someone else. You can try to get back the fees you’ve already paid, or you can suck it up and pay someone else to handle your bankruptcy case. In the end, it’s your financial future so don’t just hope that someone else is going to take care of things for you.
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Chapter 7 bankruptcy can be confusing for many people. There are different scenarios where Chapter 7 comes into play to change lives. In the latest Legal Action show, we discuss the basics of Chapter 7 and how it can be used. A partial transcription of the show is listed below. You can also view the+ Read MoreThe post What Is Chapter 7 Bankruptcy In A Nut Shell? appeared first on David M. Siegel.
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