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Potential New Student Loan Program

Wednesday, October 10, 2018

UPDATE:  A short organizational meeting will be held on Tuesday, October 23, 2018, at 3:00 P.M. in the Bankruptcy Clerk's Conference Room (126).  All are welcome to attend. 

The folks at the DMM portal are getting ready to launch a a Student Loan Modification Management Program (“SLMM” or “Slim”) for federal student loans. According to Igor Roitburg of DMM, "Like our mortgage solutions, the SLMM Program is designed to provide a structured forum for debtors to address their federal student loans and take advantage of existing federal student loan repayment programs which are otherwise being denied to debtors in bankruptcy.  Our SLMM Program builds on the solutions already developed and utilized by some debtor attorneys and seeks to streamline the process to make these solutions more readily available to all debtors.  In fact, the US Attorney’s Office recently released a Bulletin - Federal Student Loan Debt in Bankruptcy: Recent Movement Towards Income-Driven Repayment Plans in Chapter 13 – which essentially greenlights the Program we are building and confirms their position that IDRs are permitted in Chapter 13s provided certain things are done. 
 
To be clear, the focus of our SLMM Program is not discharging federal student loans but rather allowing debtors to apply for and receive existing repayment plans that the federal government would otherwise allow debtors to participate in if not for the bankruptcy."
 
This is a description of the Model SLMM Program and an article Igor provided concerning Income-Driven Repayment Plans in Chapter 13.

If you are interested in attending the organizational meeting to explore whether we should consider implementing this program in our Court, please contact Sean McDermott, Chief Deputy Clerk, at 414-290-2704 or sean_d_mcdermot@wieb.uscourts.gov.  When we have determined that there is enough interest, we will schedule a meeting and ask Igor to join us by video or telephone to answer any questions about the program.