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LegalEagle1
LegalEagle1, Attorney
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does anyone know about the law passed in the 80s called the

Customer Question

does anyone know about the law passed in the 80's called the "Holder rule" or something like that?
Submitted: 3 years ago.
Category: Legal
Expert:  TJ, Esq. replied 3 years ago.
Hello and thank you for allowing me the opportunity to assist you.

What is the subject matter of the law? For example, is it a criminal law, a law dealing with negotiable instruments (i.e., checks, notes), etc.? Also, is it a federal law or a state law? Finally, what do you want to know about the law?
Customer: replied 3 years ago.

i heard something on it that it was a federal law that stated that a student loan lender must forgive the debt or loan if the school closes/files for bankruptcy,etc..


 


this help?


 

Expert:  TJ, Esq. replied 3 years ago.
Hi again.

I'm afraid that I have never heard of that law, so I will opt out to allow another attorney to assist you . I wish you luck!
Expert:  LegalEagle1 replied 3 years ago.
Hello and welcome to JustAnswer. I would like to assist you with your question today. I am a different expert.

The Holder Rule is a rule that was adopted by the FTC in 1975 to address fraud in consumer transactions. Here is a link to an article published by the National Consumer Law Center that explains the rule and makes suggestions to the FTC on how to improve it. It also has a brief discussion as how it has been applied to student loans.

http://www.nclc.org/images/pdf/udap/letter-ftc-holder.pdf

I hope that I have answered your question. Please review the article let me know if you have more questions or need more information.

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Customer: replied 3 years ago.


if you have a privater student loan thru American Education Services, and the school goes belly up in chapter 7, under the holder rule, must the remaining dept be forgiven, just like with federally backed loans?

Expert:  LegalEagle1 replied 3 years ago.
The Holder Rule has nothing to do with bankruptcy. The Holder Rule would apply to private student loans, so if you had a claim or defense, such as fraud, that you could assert against the originator of the loan, you would be able to asset that defense against any subsequent holder of the loan.

The fact that the loan is private or a federally back loan does not matter.

I hope that I have answered your question.

_________________________________________________________________
Please rate my answers with a positive rating (three or more stars) as this is the only way I receive credit and compensation for my work. If you have additional questions or need more information, please ask.

My goal is to provide with best assistance that I can. Please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also keep in mind that the law may not always be settled or may not support the position you want. My role is not to tell you what you want to hear. but to provide you accurate information as to what the law provides. Please do not rate me poorly just because the information I have provided does not support the outcome you desire.

You can always request me through my profile at http://www.justanswer.com/law/expert-legaleagle1 also begin your question with “For LegalEagle1”
_________________________________________________________________
Use of this service does not create any attorney client relationship. Information provided is intended to explain general legal principles and assist you in finding an attorney in your area.

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Customer: replied 3 years ago.


is there a statute of limitations on when u must file a claim?


 


also my friend enrolled in a school and the tuition was 70k, the school arranged the financing thru thier prefered lender (AES), the school was given the private student loan money in 3 $33,333 installments over 3 months. he went to school for 7 months and didnt even get close to half way thru the course when he went back to the school after a weekend it had a sign saying the school closed and filed for chapter 7. the lenders didnt care the school closed and are after him for the 70k. he is wondering if the Holder Rule would apply to him in anyway? Im still a little confused on what to tell him.

Expert:  LegalEagle1 replied 3 years ago.
The Holder Rule would be a defense he would assert against the lenders when they assert a claim. If he wants to know for certain if the defense is a viable option for him he should schedule an appointment with an attorney who represents debtors and explain to him the circumstances under which the loan was obtained and have him review the loan documents. I would expect based upon the limited facts you have given that he be able to assert the defense. But the only way to know for certain is examine in detail the circumstances of his case. Unfortunately that type a detailed examination is not possible in this type of forum.

Since I have answered you initial question regarding what the Holder Rule is, I would appreciate if you could give my initial answer a positive rating of 3 or more stars so I receive credit for my work.

_________________________________________________________________
Please rate my answers with a positive rating (three or more stars) as this is the only way I receive credit and compensation for my work. If you have additional questions or need more information, please ask.

My goal is to provide with best assistance that I can. Please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Also keep in mind that the law may not always be settled or may not support the position you want. My role is not to tell you what you want to hear. but to provide you accurate information as to what the law provides. Please do not rate me poorly just because the information I have provided does not support the outcome you desire.

You can always request me through my profile at http://www.justanswer.com/law/expert-legaleagle1 also begin your question with “For LegalEagle1”
_________________________________________________________________
Use of this service does not create any attorney client relationship. Information provided is intended to explain general legal principles and assist you in finding an attorney in your area.

Please click "Great" or better to rate service.
Expert:  LegalEagle1 replied 3 years ago.
I enjoyed answering your question a few days ago regarding the Holder Rule. I just wanted to contact you to see if you needed any further assistance.

Also if you have not yet rated my answer, please do so. This the way I receive credit for my work.

Thanks.

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