Boston Student Loan Lawyer

There’s a lot going on these days regarding student loan forgiveness, student loan repayment, and other relief for borrowers. Here’s an overview as of November 21, 2022:

• The Limited PSLF Waiver ended on October 31. But the Education Department and MOHELA, its contracted PSLF loan servicer, are still processing applications. And PSLF borrowers who missed the deadline may still be able to benefit from the IDR Account Adjustment initiative.
• President Biden’s one-time student loan forgiveness initiative (which can discharge up to $20,000 in government-held federal student loans for qualifying borrowers) remains blocked by federal courts. The Education Department has taken down the application in response to court orders. The legal dispute will likely end up at the U.S. Supreme Court.
• The Biden administration is implementing several automatic cancellation initiatives through the Borrower Defense to Repayment program.
• There are discussions about a possible extension of the ongoing student loan payment pause beyond the December 31 deadline in response to the legal battles over Biden’s one-time cancellation plan. However, there is nothing definitive at this time.
• The Justice Department released new guidance that may make it easier for some borrowers to discharge their student loans in bankruptcy.
• The Biden administration will be implementing the new IDR Account Adjustment initiative by the summer of 2023. Millions of borrowers may be able to advance their progress towards loan forgiveness under this program.
• The Education Department is developing a new income-driven repayment (IDR) plan that could be more affordable than the current IDR options for at least some borrowers. Details are sparse right now, but we should have more information in the coming months.
• New regulations governing Public Service Loan Forgiveness (PSLF), the Total and Permanent Disability (TPD) Discharge program, and Borrower Defense to Repayment are set to go live by July 2023.

Lots going on these days for student loan borrowers. Check back for updates, or follow me on Forbes.com.

As the economy begins to reopen and state courts start to resume operations, more debt collectors are filing private student loan lawsuits against borrowers in default this year. If you’re facing a private student loan lawsuit, don’t panic. Here are some key tips.

Student Loan Lawsuit: Who Is Suing You?

Your first task is to figure out who sued you, and whether you recognize the student loan that is the subject of the suit. It is common for borrowers to have many different student loans. Some may be federal student loans, and others may be private student loans. But federal student loan lenders rarely file collections lawsuits in state court because they have other collections powers available that may make litigation unnecessary. Furthermore, federal student loan payments and collections are currently paused through September, anyway.

To make matters even more confusing, private student loan lenders often outsource operations and servicing to third-party contractors. Sometimes, they sell or transfer your student loan to a new loan holder. So understanding who filed the lawsuit, and what specific loan account is the subject of the suit, is a critical first step. Some of the most recent student loan lawsuits in Massachusetts have been filed by National Collegiate Student Loan Trust and Massachusetts Educational Financing Authority (MEFA).

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On January 20, 2021, President Biden signed an executive order extending pandemic-related student loan relief to September 30, 2021. That relief was originally set to expire on January 31, 2021.

Here’s what you need to know:

• All payments, interest, and collections on government-held federal student loans will continue to be suspended through September 30, 2021.
• The relief only applies to government-held student loans — not commercially-held FFEL loans, Perkins loans, or private student loans.
• The U.S. Department of Education confirmed that the months of suspended student loan payments will continue to count towards loan rehabilitation and loan forgiveness programs, including Public Service Loan Forgiveness, for those who are otherwise meeting all eligibility criteria.
• President Biden suggested that the moratorium could be extended further, although a decision on that would be unlikely until much closer to September 30, and will likely depend on economic and pandemic conditions at that time.
• Additional student loan relief measures have, so far, not been included in new federal stimulus proposals. That could change as work on a new stimulus package continues in Congress. In addition, lawmakers could introduce new student loan reform measures through separate legislation, a prospect that the Biden administration has suggested.

Massachusetts Attorney General Maura Healey has issued emergency state regulations in response to the COVID-19 pandemic. These regulations provide student loan borrowers and other consumers with some of the strongest legal rights and protections in the country against debt collectors.

Here’s an overview of what these new regulations do:

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There is currently $1.6 trillion in outstanding student loan debt. That figure has nearly doubled over the course of the past 10 years. 44 million Americans carry student loan debt, and one in four of those borrowers are struggling with their payments. Millions of student loan borrowers are putting off critical life decisions such as home purchases, marriage, having children, and saving for retirement.

The scope of the problem is only aggravated further by a sprawling and dysfunctional student loan system, skyrocketing higher education costs, uniquely restrictive rights and options for borrowers, and poor government oversight.

Can the system be fixed? Yes. Here’s how.

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Student loan lawyer Adam S. Minsky has been named a Massachusetts Super Lawyer “Rising Star” for the fifth year in a row. The designation is awarded only to the top 2.5% of attorneys in Massachusetts, and it reflects Attorney Minsky’s ongoing work helping student loan borrowers and their families.

Attorney Minsky started his practice nearly nine years ago with a mission to defend, protect, and advocate for people saddled with student loan debt. Since then, he has battled student loan servicers, debt collection agencies, and government agencies, including the U.S. Department of Education, and he has helped people navigate the confusing and often predatory student loan system.

In the past several years, Attorney Minsky expanded his student loan practice to New York, published several student loan guidebooks, became a contributing writer to Forbes, and has travelled the country training other professionals to help student loan borrowers.

This year, Attorney Minsky presented to financial planners in New York City, to attorneys in Miami and New Hampshire, and to AmeriCorps service members in Massachusetts. He was quoted in The Washington Post, The Chronicle of Higher Education, and The Boston Globe. Next month, Attorney Minsky will be presenting at the National Consumer Law Center’s Consumer Rights Litigation Conference in Boston.

Attorney Minsky’s name will be published in Boston magazine and Super Lawyers magazine.