Student Loan Management Program

(a) Purpose. The Student Loan Management Program (SLM Program) creates a process for debtors to apply for student loan resolution options with their creditors. The goal of the SLM Program is to facilitate communication and exchange of information in an efficient and transparent manner, and to encourage the parties to consensually agree to student loan resolution options, which include reaching repayment agreements. Participation in the SLM Program -80- provides no greater eligibility for any student loan resolution option than the debtor would have outside the SLM Program and/or bankruptcy.

(b) Non-exclusivity. Nothing in this rule shall impair the right of any debtor with a federal loan to apply directly to the U.S. Department of Education, either through their servicer or the U.S. Department Of Education’s website at www.studentaid.gov, to initiate a free process to determine resolution and/or repayment options or a creditor to decline to participate in the SLM Program. (c) Definitions. The following definitions shall be applicable to the SLM Program: (1) Creditor: means any holder of an Eligible Loan.

(2) Debtor: means any individual debtor in a case filed under chapter 13 of the Bankruptcy Code, including joint debtors. Where a debtor is represented by an attorney, the term “Debtor” may mean the debtor’s attorney on behalf of the Debtor individually unless the context requires otherwise. (3) Document Preparation Software: means a secure online program that facilitates the preparation of the Initial SLM Package by completing the Standard SLM Documents (where applicable) and generating a customized checklist of required supporting documents that the Creditor and/or the Servicer requires. Non-Federal Loan Creditors shall specify to the Portal operator the documents they require to review any Student Loan Repayment Option.

The use of the Document Preparation Software increases the likelihood that the initial submission by the Debtor is complete and accurate and should expedite Creditor and/or Servicer’s review. The Court will list approved Document Preparation Software on its website. NOTICE IS HEREBY PROVIDED THAT A DEBTOR WITH A FEDERAL LOAN HAS THE OPTION TO APPLY DIRECTLY TO THE U.S. DEPARTMENT OF EDUCATION, EITHER THROUGH THEIR SERVICER OR THE U.S. DEPARTMENT OF EDUCATION’S WEBSITE AT www.studentaid.gov, FOR FREE TO DETERMINE RESOLUTION AND/OR REPAYMENT OPTIONS (4) Eligible Loan: means any educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit, or for any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, on which Debtor is an obligor. (5) Federal Loan: means an Eligible Loan that is funded, guaranteed or insured by the federal government, or made under any program funded in whole or in part by a governmental unit. -81- (6) Initial SLM Package: means any Standard SLM Documents and supporting documentation required to initiate the assessment of Debtor’s Student Loan Resolution Option.

Creditors and/or Servicers are not required to create new forms, applications or other documents to participate in and/or for use in the SLM Program. (7) Portal: means a secure online service that allows SLM Program documents and communications to be submitted, retrieved and tracked between the Required Parties. The Portal shall provide access to the Trustees. Use of the Portal by Debtors and Creditors and/or Servicers provides transparency by making information immediately available to all parties through a secure internet website.

A Federal Loan creditor and/or servicer will import all such documents and/or communications from the portal to the system used by that Creditor and/or Servicer to ensure compliance with requirements of the Privacy Act and Federal records retention requirements. The Court will list approved Portals on its website. (8) Required Parties: means (when applicable) Debtor, Debtor’s attorney, Creditor, Servicer, their legal counsel, (if any). (9) Servicer: means the servicer of the Eligible Loan.

(10) SLM Period: means the time during which the SLM Program is in effect prior to its expiration or termination by Court order. (11) SLM Program Payment: means a payment to be made to a Creditor pursuant to a Student Loan Resolution Option for which Creditor has approved Debtor and included in the plan as required by applicable bankruptcy law, unless payment outside the plan has been provided for and approved. For purposes of the SLM Program, the SLM Program Payment shall be deemed to include any changes required per the terms of any approved Student Loan Resolution Option and/or any recertification of such option thereof. (12) Standard SLM Documents: means standard applications and/or forms that are generally required by Creditors and/or Servicers to review and process a Debtor’s request for any Student Loan Resolution Option.

With respect to Federal Loans, the Standard SLM Documents shall mean the standard applications and/or forms developed and used by the United States Department of Education as part of its management of Federal Loans over which it has oversight, as may be modified from time to time. (13) Student Loan Resolution Option: means the full range of solutions available to Debtor with respect to any Eligible Loan including, but not limited to, deferment, forbearance, administrative discharge, rehabilitation, consolidation, any available repayment plan (including income driven repayment plans), -82- compromise or settlement. Any Student Loan Resolution Option offered to Debtor must comply with all applicable laws and regulations. (d) Eligibility.

Any Debtor who has an Eligible Loan and a chapter 13 case pending in the United States Bankruptcy Court for the Eastern District of Pennsylvania may participate in the SLM Program. (e) Commencement of the SLM Program. (1) Before a Debtor may seek to commence the SLM Program, the Debtor must pay the bankruptcy filing fee in full and complete the required Document Preparation Software, except that the Document Preparation Software is not required for a borrower seeking only to file a Notice of SLM to enable communication with the U.S. Department of Education and/or its servicer. (2) The Debtor may seek to initiate the SLM by filing a Notice of Participation in SLM Program (the “Notice of SLM”), L.B.F. 9019-3A and serving the Notice of SLM as set forth in subdivision (f)(1).

(3) If the Creditor or Servicer does not file a timely objection to the Notice of Participation in SLM Program, the court shall enter an order in the form of L.B.R. 9013-3B (“the SLM Commencement Order”). (f) Service. (1) The Debtor shall serve a copy of the Notice of SLM by first class mail postage, prepaid on (a) the Creditor’s and Servicer’s named officer(s) at the entities’ headquarters address; (b) for Federal Loans held by the U.S. Department of Education on the U.S. Department of Education on: United States Attorney’s Office, EDPA 615 Chestnut Street, Suite 1250 Philadelphia, PA 19106 Attn.: Civil Division – Bankruptcy Attorney General of the United States U.S. Department of Justice 950 Pennsylvania Ave., NW Washington, DC 20530-001 Office of the General Counsel U.S. Department of Education -83- ATTN: Deputy General Counsel Lyndon Baines Johnson (LBJ) Department of Education Building 400 Maryland Ave, SW Washington DC 20202 (2) In addition to the service required by subdivision (f)(1), the Debtor shall serve a copy Notice of SLM on the U.S. Department of Education at an e-mail address posted on the court’s website. (3) All documents, other than the Notice of SLM and Standard SLM Documents, shall be served on Creditors, Servicers and the U.S. Department of Education as required by the Fed. R. Bankr. P. 7004(b).

(g) SLM Program General Duties. The following duties apply during the SLM Period: (1) Good Faith Requirement: The Required Parties shall act in good faith throughout the SLM Period. Good faith includes, but is not limited to, promptly responding to all inquiries through the Portal and providing all requested documentation and information. (2) Deadlines.

The Required Parties shall comply with all deadlines in the SLM Program. (3) Communication through the Portal: During the SLM Period, all material communications between the Required Parties and the Chapter 13 Trustee, if any, shall occur exclusively through the Portal, unless otherwise permitted by the Court. (h) SLM Program Procedures. The following procedures shall apply to the SLM Program: (1) The SLM Period shall commence upon the entry of the SLM Commencement Order.

(2) Duration. The SLM Period initially shall be 180 days from the entry of the SLM Commencement Order, unless otherwise agreed to by the parties or ordered by the court. The SLM Period shall terminate upon dismissal of the bankruptcy case. (3) No Dismissal.

Required Parties may not require the dismissal of Debtor’s bankruptcy case as a condition precedent to an agreement reached through the SLM Program. (i) Debtor’s Duties in the SLM Program. The Debtor’s duties in SLM Program include: (1) Submit Initial SLM Package. Within 7 days after the entry of the SLM Commencement Order or Servicer’s registration on the Portal, whichever is later, the Debtor shall upload the Debtor’s Initial SLM Package, the Notice of SLM and -84- a copy of the SLM Commencement Order to the Portal and pay the Portal submission fee directly to the Portal vendor.

(2) Document Submissions. Upon the Creditor’s and/or Servicer’s request, Debtor shall promptly provide any additional or corrected documents through the Portal. (3) Conclusion of SLM Program. Within 14 days of the date when Creditor and/or Servicer and Debtor conclude the SLM Program, the Debtor shall file with the Court a Notice of Resolution, that includes the student loan resolution option agreed by the parties, or a Notice of No Resolution, and shall serve the Notice of Resolution in the manner required by subdivision (f)(1) and (2) of the rule.

(j) Creditor’s duties in the SLM Program. The Creditor’s duties in the SLM Program include: (1) Registration on Portal. No later than 21 days after the entry of the SLM Commencement Order, the Creditor or Servicer (if any) shall register on the Portal. (2) Acknowledgement of Initial SLM Package.

No later than 30 days after Debtor submits a completed Initial SLM Package on the Portal, the Creditor and/or Servicer shall acknowledge receipt of the Initial SLM Package on the Portal. (3) Process the Debtor’s Application. Within 30 days of receipt of the Debtor’s Initial SLM Package, the Creditor and/or Servicer shall notify the Debtor if any additional or corrected documentation is needed. The Creditor and/or Servicer shall determine the Debtor’s eligibility for any Student Loan Resolution Option within the later of 60 days of receipt of the initial SLM Package or any additional or corrected documentation timely requested by the Creditor and/or Servicer.

The Creditor and/or Servicer shall notify the Debtor if the Debtor qualifies for any Student Loan Resolution Option. (4) Prompt Response to Debtor’s Supplementations and Inquiries. The Creditor and/or Servicer shall promptly review Debtor’s additional or corrected documentation and respond to Debtor’s inquiries via the Portal. (k) Resolution Procedures.

If the parties reach a consensual resolution on an Income Drive Repayment Plan or other resolution, the following applies: (1) Pre-confirmation. If the Debtor’s Chapter 13 Plan has not been confirmed, within 30 days of the filing of the Notice of Resolution, unless the plan already so provides, the Debtor shall file an amended chapter 13 plan that provides for the SLM Program Payment to be paid directly by the Debtor and not by the Trustee. (2) Post-confirmation. If the Debtor’s Chapter 13 Plan has been confirmed and provides for the Creditor’s claim to be paid pro rata with other unsecured creditors, the Debtor shall file a motion to modify the confirmed Chapter 13 Plan -85- that provides for separate classification of the Eligible Loan(s) within 30 days of the filing of the Notice of Resolution.

(3) Nonstandard Plan Provisions. An amended plan filed pursuant to subdivision (k)(1) or (k)(2) shall include the following Non-Standard Provisions: (A) The Debtor is not seeking nor does this Plan provide for any discharge, in whole or in part, of student loan obligations under 11 U.S.C. §523(a)(8). (B) The Debtor shall be allowed to seek enrollment in any income-driven repayment (“IDR”) plan with for which they are otherwise eligible without further Order of the Court. (C) The Creditor shall not be required to allow enrollment in any IDR unless the Debtor otherwise qualifies for such plan.

(D) The Debtor shall re-enroll in the applicable IDR annually or as otherwise required and shall, within 30 days following a determination of the updated payment, notify the Chapter 13 Trustee of such payment. The Trustee or the Debtor may, if necessary, file a Motion to Modify the Chapter 13 plan to allow such direct payment of the student loan(s) and adjust the payment to other general unsecured claims as necessary to avoid any unfair discrimination. (E) It shall not be a violation of the automatic stay or other State or Federal Laws for the Creditor or Servicer to send the Debtor normal monthly statements regarding IDR Payments due and any other communications including, without limitation, notices of late payments or delinquency. These communications may expressly include telephone calls and e-mails if the Debtor has agreed to electronic communications under normal processes established by the Creditor and/ or Servicer.

(l) Attorney Compensation. Debtor’s counsel may request compensation for assisting the Debtor in SLM Program, subject to Court approval as set forth in L.B.R. 2016-3 as follows: (1) Presumptively Reasonable Initial Fee. The Debtor’s counsel may receive reasonable compensation for all work involved in the SLM Program and may request allowance of compensation as an additional administrative expense on a “no look” fee basis, in a reasonable amount not to exceed $1,500.00. (2) “No-Look” Compensation Requirements.

To be eligible to request allowance of the “no look” fee under subdivision (l)(1), the Debtor’s counsel must provide the following services to the Debtor: (A) review of all resolution options with Debtor, to include repayment options; -86- (B) filing the Notice of SLM; (C) preparation of the Initial SLM Package; (D) preparation of any additional forms required throughout the SLM Program; (E) submission of all documentation through the Portal; (F) filing other required pleadings; and G) preparation of proposed orders and settlement papers, if applicable (3) Annual Recertification Compensation. Debtor’s counsel may request the allowance of $250.00 in compensation per year to recertify the Debtor’s income- driven repayment plan, if applicable, but only until such time as the U.S. Department of Education establishes the automatic certification of income for IDR borrowers as allowed under Section 3 of the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act), PL 116-91, December 19, 2019, 133 Stat 1189. (4) Additional Compensation. In lieu of seeking compensation under subdivisions (l)(1) and (l)(3), the Debtor’s attorney may seek additional compensation by separate application attaching contemporaneous time records for necessary services provided during SLM Program.