Student loan repayment is a problem for many families in South Florida. Fortunately, March 30Chief Bankruptcy Judge Laurel Isakoff has issued an approval order for the Chapter 13 Student Loan Program (SLP) for the Southern District of Florida. The program, an 18-month effort by Judge Robert Mark and Chapter 13 Resident Trustee Robin Weiner and a committee of legal professionals, represents a significant opportunity for student loan borrowers to find relief from their growing debt burden.
The Federal Reserve Bank of New York reports that there were $ 1.58 trillion in student loan debt at the end of 2020. Just before the pandemic, 11.1% of the 44.7 million Americans who received student loans were more than 90 days late in payments and defaulted. As part of the pandemic programs, borrowers on direct federal loans were provided with an automatic deferral of payments and an interest rate of 0%. These provisions have lowered the default rate, but will expire in September 2021.