By Edward Henderson, California Black Media

The U.S. Department of Education (DOE) announced that its Office of Federal Student Aid (FSA) resumed collection of its defaulted federal student loan portfolio on May 5.

The department has not collected on defaulted loans since March 2020.

‘Collections on defaulted federal student loans are resuming. This means that your tax refund or other federal benefits may be withheld,” reads an email affected borrowers in California and around the country received from the DOE last week.

“Later this summer, your employer may also be required to withhold a portion of your pay until you begin to repay your defaulted federal student loan,” the email continues.

According to the DOE, 42.7 million borrowers owe more than $1.6 trillion in student debt. More than 5 million borrowers have not made a monthly payment in over 360 days and their loans have been declared “in default.” Another 4 million borrowers are in late-stage delinquency (91-180 days). As a result, there could be almost 10 million borrowers in default in a few months. If this happens, almost 25% of the federal student loan portfolio will be in default.

“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” said U.S. Secretary of Education Linda McMahon in a release.

The DOE is urging borrowers in default to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. Later this summer, FSA will send required notices to begin administrative wage garnishment.

Student loan debt statistics among racial and ethnic groups reflect dramatic differences in financial health, habits, and resource availability from one community to the next, according to the Education Data Initiative.

Black and African American college graduates owe an average of $25,000 more in student loan debt than White college graduates (Black and African American bachelor’s degree holders have an average of $52,726 in student loan debt).

“The level of concern here really depends on the reasons a borrower has not paid their federal student loans. If they don’t have the capacity, they may be overstretched,” Michele Raneri, vice president and head of research at TransUnion, said in a statement. “They may not know they have to pay them, may not be able to find the information on how to do so, or may not have a willingness to pay for one reason or another,” she said.

Top tips to manage any pending student loan payments include reviewing your student loan balance on your Dashboard.

Affected borrowers can visit their loan servicer’s website for assistance if needed. Setting up auto pay to ensure on-time payments is recommended. Individuals are also encouraged to review many loan forgiveness options and qualifications.

Most programs have strict eligibility requirements, but student loans can be forgiven under programs such as the following:

• Public Service Loan Forgiveness for people who work for eligible government and nonprofit employers
• Teacher Loan Forgiveness for people who work in eligible teaching jobs
• Income-driven repayment (IDR) forgiveness for people who repay their loans on an eligible IDR plan
• Total and permanent disability discharge for people with a disability that severely limits their ability to work

Learn about other loan forgiveness programs at Studentaid.gov.

Oakland Post

Posts by Oakland Post

By Tanya Dennis

Dr. Laura Dean Head, a Black Studies professor at San Francisco State University for 35 years, transitioned on June 19, 2013.  Aware of her imminent demise, Dr. Head appointed former student and friend for 28 years, Zakiya Folami Jendayi as trustee, executor, and sole beneficiary of her estate in front of several credible witnesses and a notary.  Head also gave Jendayi power of attorney and appointed Jendayi as her advanced healthcare agent.

Jendayi says, “Laura had two sisters but was estranged from them the entire 28 years we were friends.”Despite that fact, Head’s sisters, Della Hamlin and Helaine Head, questioned Head’s trust three times after Head transitioned, attempting to acquire Head’s estate, and three different attorneys told them they didn’t have standing. Dr. Head did not include either of her sisters in her trust or will. Dr. Head’s Trust included a disinheritance and no contest clause regarding her sisters.

In 2020, Dr. Head’s deceased mother’s abandoned property for over 20 years sold, entitling Head’s estate to one-third of the proceeds. Jendayi filed a petition for distribution rights on behalf of Dr. Head’s estate.  Head’s sisters responded, filing a lawsuit against Jendayi to invalidate Head’s trust, claiming Jendayi used undue influence and forgery, citing Head’s lack of capacity to make business decisions.

Trending

Biden Commutes Sentences and Pardons Marijuana Offenses in Sweeping Criminal Justice Reform

During trial, Della testified she had not seen Head since 1997 or 1998, and Helaine could not identify Dr. Head in a photo during her trial testimony. Head’s physician, Dr. Stephen Sarafian, wrote a letter and testified that Dr. Head lacked mental capacity, and her mental state rendered her unable to manage her own financial resources and/or to resist fraud or undue influence.

His letter had the wrong day, month, year and identified Dr. Head as a male. Jendayi filed a complaint against Sarafian with Kaiser’s grievance department and the Medical Board of California. Both agencies denounced Sarafian’s false letter.

When Jendayi subpoenaed Sarafian to testify a second time, Sarafian testified he had not performed a mental assessment on Dr. Head, had not diagnosed Dr. Head’s lack mental capacity, and had not determined if she could manage her own financial resources and/or resist fraud or undue influence,

During the 18-day trial, the sisters’ attorney, Daniel Leahy, stated that Jendayi named herself Head’s beneficiary. No one testified to that claim, nor was there any evidence. When Jendayi objected during the trial, Judge Sandra Bean stated, “it’s only argument.”

However, Bean accepted the “only argument” lie from Leahy, a court attorney who never met Dr. Head, over Dr. Head’s attorney, Elaine Lee, who testified that Dr. Head named Jendayi as her beneficiary after she met with Dr. Head privately. Bean ruled that Jendayi named herself beneficiary and unduly influenced Dr. Head.

Zendayi says “Trial transcripts show Bean’s extreme bias and discrimination against me, how Bean lawyered from the bench, abused her discretion, changed a witness testimony on the record and exhibited blatant racism.”

The Appellate Court upheld Bean’s ruling, They also ruled that Jendayi named herself beneficiary and relied on Sarafian’s invalid letter three times to uphold Bean’s ruling.

Jendayi then petitioned to the Supreme Court of California for justice, but the Court denied hearing her case. Jendayi is now headed to the Supreme Court of the United States seeking justice. Judge Bean has been contacted for comment, but thus far there has been no response.

Oakland Post

Posts by Oakland Post

Feb. 19 is the deadline to apply for more than $3.6 million; Webinars set for Jan. 29

Special to The Post

An annual funding opportunity is now open for developers and nonprofits considering projects focused on the creation of affordable housing, community infrastructure and other services in Marin County – especially those designed to assist local lower-income households. All told, $3.6 million is on the table.

As of Jan. 22, applications are being accepted within the County of Marin’s annual funding cycle for Community Development Block Grants (CDBG) and Home Investment Partnerships Program (HOME) grants. Both are administered by the Marin County Community Development Agency (CDA), which leverages several local, state, and federal funding sources for the programs.

CDA also administers the State of California’s Permanent Local Housing Allocation, including a 1-to-1 match from the Marin Affordable Housing Fund. This year, in partnership with the City of San Rafael, applicants may also apply for City of San Rafael Affordable Housing Trust Funds (AHTP) through the same application.

Local agencies have until 5 p.m. Wednesday, Feb. 19, to apply for the funds. Application webinars will be held online Wednesday, Jan. 29, to provide details to potential applicants.

Many residents struggle to meet basic needs with housing, health, childcare, and food security. Marin has one of the highest median household incomes in California – $186,600 for a family of four. However, it also has some of the highest home prices and development costs in the country. The median local price for a single-family, detached home has neared $1.8 million in recent months, and typical rents range from $2,500 to $3,400.

There is increasing pressure on charitable organizations to provide help. The federal grants program offers funding to those nonprofits delivering key services to the community with a minimum grant size of $15,000.

Application materials for the 2025 cycle are available on CDA’s Notice of Funding Availability webpage and in CDA’s Marin County Civic Center office at 3501 Civic Center Drive, Suite 308, in San Rafael. The office is open weekdays from 8 a.m. 4 p.m.

Applications are assessed on how they meet funding priorities and goals, affirmatively further fair housing, serve low-income residents and serve local members of protected classes based on race, gender, disability, and other factors. The grants are not available to individuals; those in need of housing assistance and resources are encouraged to review the County’s Housing Help webpage.

During the Jan. 29 webinars, participants will learn more about the application process, types of eligible projects, and new project requirements. The sessions are organized into two distinct presentations:

• 1:30-2:30 p.m. – Community Infrastructure (Capital) and Public Service Projects
• 2:30-3:30 p.m. – Housing Projects

CDA staff members are available throughout the application process to consult with organizations unable to attend the online sessions. Office hours will be held throughout the application process; register via the division’s webpage. For more details, email the Housing and Federal Grants Division.

Staff will review applications and conduct public hearings about recommended allocations this spring. By June, the Board of Supervisors will hold a final public hearing and make recommendations to be submitted to the federal government. Approved allocations would be received by the applicants by autumn.

The County of Marin Media Relations Department is the source for this story.

Oakland Post

Posts by Oakland Post