Starting on August 1, 2019 the Middle District of Florida’s Bankruptcy Courts, which encompasses 35 counties ranging from Jacksonville to Naples, will be offering a new Student Loan Modification Program or “SLM Program” for short. The Middle District will be test piloting this brand new approach to student loan debt and the SLM Program will be available to debtors who file both Chapter 7 and Chapter 13 bankruptcy cases.
Modeled after the Court’s Mortgage Modification Mediation Program, which for several years has been a major success in assisting homeowners modify their home mortgages, the SLM Program is intended to streamline and facilitate the process for modifying student loan repayment plans.
Although student loans are still not dischargeable in bankruptcy (with the exception of some extreme cases), the program aims to help those struggling to afford their current payment plans and introduce borrowers to options they never even knew existed.
The goal of the SLM Program is to standardize the application process and make sure that people are receiving accurate information regarding their repayment options, which can get convoluted when a borrower has a variety of different types of loans from both private and public sources.
While the success of this program is yet to be determined, it certainly has promise. If you are struggling with repaying your student loans and want more information about this exciting new opportunity, please contact our office to speak with our attorneys about how the SLM Program could help you.”