Student Loan Reliefs Extended to Borrowers by the New Pandemic Stimulus Package

The controversial 2021 Omnibus Appropriations Bill that Trump grudgingly enacted, includes provisions to help students cope in managing their student loans. Although the provisions do not include financial aid, they will make student loans more accessible and available to low-income students or their families.

While the provisions of the earlier CARES Act that allowed students to defer payments on principal and interests on existing student loans was set to expire on December 31, incumbent Education Secretary Devos took the initiative of extending the moratorium up to January 31, 2021. Any need to further extend the moratorium by February 2021 will be decided by incoming President-elect Joe Biden after he officially assumes office on January 20, 2021.

New Relief Extended to Students with Existing Educational Loans

The new pandemic relief package related to the financial aid  accessed via the government’s Pell Grants include the following:

Repeal of SULA

The SULA, or Subsidized Loan Act, which prescribes a set of guidelines limiting the amount of subsidized loans that students can avail to cover up costs only up to 150% of the total duration of their education program, While the SULA affected mostly students who shifted from a 4-year college degree to a 2-year course, the new bill’s repeal of the SULA now enables students to access subsidized loans needed until completion of their college course.

The term subsidized denotes that the government assumes the responsibility of paying the interest on loans availed by students as funding for their college education.

Changes in the Student Loan Repayment Assistance Program

In the CARES ACT, a Loan Repayment Assistance Program (LRAP) exempted students from the payment of taxes on educational benefits provided by employer. The tax exemption is likewise set to expire on December 31, 2021 but has been extended to stay in effect for a period of five years; starting January 2021 through the end of 2025.

In cases where student loans were paid by employers as part of employment incentivisation and retention program, the amount paid by employers were still taxable on the part of students. Whereas before and under the IRS Code, the student loan payments made in behalf of employees were considered as part of the salaries received  from employers.

Changes Introduced on How the U.S. Government Will Process and Service Next Generation Student Loans

The Next Generation Processing and Servicing (NextGen) of federal student loans has been extended and revised

The U.S. government will now distribute servicing of student loans to servicers on the basis of the latter’s capacity and performance.

Borrowers whose student loan accounts are being handled by servicers who have recurrently violated FSA guidelines, laws and applicable requirements, will be relocated to compliant loan servicers.

NextGen loans will now allow multi-student loan servicers to enter direct contract agreements with the U.S. Department of Education.

NextGen loans must provide incentivization aimed at supporting borrowers who are at risk of becoming delinquent or of defaulting on payment.

Borrowers of loans to fund student education are now allowed to choose the loan servicer who will consolidate their federal student loans.

Additionally, the new student loan relief includes providing emergency financial assistance to students who are incarcerated. The change entails modification in the FAFSA form as a way to repeal the exclusion of incarcerated or imprisoned students looking to complete their college education.

In line with all the changes introduced above, the U.S. Department of Education is required expand the publication of comprehensive data regarding the performance of loan servicers as a way to improve the transparency of the servicers and the terms and conditions covering the lending agreements.

Such changes will definitely make it easier for students who have previously defaulted or have been delinquent in their student loans, to access a same day funding personal loan that they can use to have their past due student loans restructured at the soonest time possible.

What if an Injured Party Has Limited Financial Means to File Personal Injury Lawsuit?

In motor vehicle accidents where the driver at fault is clear, claiming payment of damages on the part of the injured party can be fairly quick and simple. Problems arise if the driver at fault refuses to compensate the injured party for medical expenses and related costs of damages sustained due to the accident. The party injured will be forced to take the matter to court in order to assert his legal right to claim compensation for the personal injury. . .

Now here’s the thing, there are instances in which an aggrieved party to a car accident does not have the means to pay for an attorney, much less the related costs of litigation.

While financial aid is not available for this kind of situation, there are attorneys who offer pro bono legal advice and assistance to individuals without financial means, to help them pursue claims for compensation within their jurisdiction. Through a pro bono legal service, the injured party can enforce their right to claim personal injury compensation, usually by way of extra judicial settlement.

However, matters can still get complicated if the errant party still refuses to make an out of court settlement and instead, decides to use his insurance coverage as leverage against any threat of legal action. In knowing that the claimant does not have the financial resources to pay for the related legal expenses, the errant party has a chance of avoiding payment of compensation.

On the part of the defendant’s insurance provider, it is under obligation to pay for the legal expenses until the dispute is resolved in court.

When Litigation Costs Pose as Barrier in Legally Claiming Compensation for Personal Injury

Even if a lawyer offers his services free of charge, there are other legal expenses that make lawsuits too burdensome to pursue. Although a police report can be used as proof In making a legal claim for compensation against the driver at fault, there are other legal expenses to consider. The attorney for the injured party who becomes the plaintiff in a lawsuit, will need more than a police report in proving his client’s legal rights.

The lawyer also has to present witnesses to the incident, including the so-called “expert witness” who can strengthen the case by providing their expertise in analyzing the circumstances surrounding the motor vehicle accident. While footage of a surveillance camera can be helpful if available, it will only be in addition to the accident reconstruction work of professionals engaged in this type of service.

Nonetheless, if the lawyer handling the case knows for a fact that his client’s claim for compensation has merits, his legal advice may include seeking financial assistance by way of a lawsuit loan from a reputable pre settlement financing company.

What is a Lawsuit Loan

A lawsuit loan, sometimes called lawsuit cash advance, settlement funding or lawsuit funding is money provided by a pre settlement financing firm to help individuals in the midst of a personal injury lawsuit see the case flourish in court. Although a lawsuit loan works similarly to a financing arrangement in which the borrower pays interest on the principal loan amount, it is different because payment will be collected from the amount awarded by a court as compensation of the plaintiff, which can be greater than the amount originally sought as compensation.

It is actually a form of investment on the part of the lending firm as the offer comes with a “no-recourse” agreement, which means if the court does not rule in favor of the plaintiff, the pre settlement financing company will not enforce collection of payment but will simply consider it as an investment loss. Learn more about lawsuit loans and how it works from this web page: .