Resolving Student Loan Disputes through Mediation

diploma and cashMany recipients of student loans face daunting debt and may experience difficulty paying on their student loans. To handle disputes between borrowers and lenders, many student loan programs have implemented ombudsmen programs. These ombudsmen help to mediate disputes between the parties and potentially negotiate a solution. The mediator does not have the authority to change a payment plan or enforce a resolution on the parties. Instead, he or she tries to get the parties to reach an agreement on their own terms.

Role of Mediator or Ombudsman

The mediator or ombudsman is a neutral third party that serves as a middleman between the borrower and lender. He or she does not work directly for either party. He or she is not an advocate for either party. Instead, he or she uses special conflict resolution skills to help the parties improve their communication. He or she can explain the law to the parties and point out weaknesses in each side’s case. This information can help motivate the parties to resolve their differences.

Benefits of Using Student Loan Mediation

Mediation may be able to bring about positive results in the dispute and potentially avoid default. They may be able to correct mistakes and broker compromises between the parties. The mediator may be able to make recommendations that provide relief for the borrower. He or she may recommend a compromise that serves the interests of both parties, such as suggesting consolidation or repayment plans, filing for loan cancellation or correcting a mistake with a borrower’s credit.

Tips for a Successful Resolution

Before getting started with student loan mediation, it is important to have clear and realistic expectations. It is best if you can clearly identify the problem so that the mediator can spend time trying to find solutions to the problem you assert rather than spending the time to see where things went wrong.

Seeking Assistance from a Mediator to Develop a QDRO

Assisting them with professional helpA qualified domestic relations order (QDRO) is a separate order from the court that explains how a retirement account is split by a couple at divorce. A QDRO contains specific language and terms that instruct the plan administrator how to divide it and treat it after divorce. The terms must comply with the retirement plan’s guidelines.

QDROs make up an important part of the process of dividing assets. Retirement accounts may represent the largest asset a couple has. It is given certain protection by law that may not be attached to other types of assets. Until 1984, a retirement account was not subject to division in a divorce. A QDRO must be carefully drafted. It cannot require the plan administrator to pay the other spouse more than, sooner than or in a different manner than the spouse whose name the account is titled in can receive payments.

A mediator can help a couple determine terms for their QDRO. There may be many options for the division, such as making a lump-sum payment, paying a monthly payment in retirement years, being made into new retirement accounts or other arrangements. A skilled mediator can walk through each option with the parties. He or she can learn what the interests of the parties are and work on an agreement that protects the interests of both parties. In some cases, a 50/50 split is fair. In other situations, the parties may agree to divide other property differently to decrease the total retirement benefits the non-participating spouse receives.

A mediator can also consider the tax effects of different arrangements and can offer recommendations on how to minimize the amount of taxes that are incurred due to the division of the account. If drafted properly, a QDRO can help avoid a tax penalty for early distribution.

Anatomy of a Bad Faith Insurance Mediation

Senior Couple Insurance Appication FormA bad faith insurance claim arises when an insurance company is accused of violating its contractual responsibilities with its insured. In some situations, involving a bad faith insurance claim, there may be two separate claims, one that is against the insured, such as an automotive accident claim, and the second for the bad faith assertions. These types of claims may be resolved through the process of mediation.

Types of Bad Faith Claims

A bad faith insurance claim may arise out of a variety of situations. A bad faith claim may arise if the insurance company denies or causes unnecessary delay in approving a claim. For example, it may refuse to pay under an uninsured motorist claim, homeowner’s insurance claim or other first party claim that requires direct payment to the insured.

A bad faith insurance claim may also arise in third party claims when the insurance company does not properly handle the claim. For example, it may refuse to settle a valid claim against the insured within the required time limit. It can also face this type of claim for failing to defend against a claim when it is required to provide legal counsel for the case.

Parties Involved in Mediation

There may be various parties involved in mediation. While insurance adjusters may typically be part of a routine insurance claim, they may not be involved in bad faith insurance claims. Instead, a claims representative may represent the interests of the insurance company that is exposed to potential liability. The insured is also usually present at mediation. Both parties may also have their own legal counsel.

Timing of Mediation

Mediation of a bad faith insurance claim may be commenced immediately after the act that is alleged as being the bad faith act. It may be commenced before or after litigation ensues. Mediation is a voluntary process that the parties can participate in at any time that they both agree to it.

DUI and Criminal Mediation FAQs

Criminal in handcuffsMediation is becoming a more popular option for communities behind restorative justice who believe that rehabilitating people convicted of DUI and other crimes requires more than simply imprisoning individuals. Some common questions and answers associated with this practice include:

What are the Benefits of Mediating a Criminal Case?

Studies on the mediation of criminal cases have found that client satisfaction rates are higher with this process, victims are more likely to participate and victims are more likely to have reduced fear of the offender. Additionally, defendants are more likely to complete restitution requirements and more likely to reduce criminal behavior.

How Is a Case Referred for Mediation?

Several communities have mediation systems in place in order to refer a case for mediation. Getting a case into mediation may require the prosecutor to accept this option or to remove the case from the criminal process. In other situations, mediation may supplement the criminal procedure process. Because the prosecutor is the one who “presses the charges,” it often is not enough for the victim to agree and the defendant be able to allude all criminal responsibility. However, each program operates differently and uses a different procedure.

What Types of Cases are Referred for Mediation?

Not all cases are appropriate for mediation. Some communities prohibit felony or serious misdemeanor cases from being mediated. Misdemeanor cases involving people with an ongoing relationship, such as family members, neighbors or coworkers may be referred to mediation. Likewise, crimes involving trespassing, destruction or property, harassment, theft and DUI are often referred for mediation because there is often some benefit that both the victim and the defendant receive from this process. Some programs use a screening unit to identify particular cases to refer to mediation.

Who Participates in Criminal Mediation?

The defendant and the victim participate in criminal mediation. The defendant’s attorney may also participate. The mediator helps the parties to communicate through the problem and reach a resolution with which they are both satisfied with. The mediation process is voluntary, so no party can be forced to participate.

Intersection of Drug Crimes and ADR

Syringe, pills with drug vials in backgroundIt is no secret that drug crimes are a common problem across the nation. Drug addiction often leads to the commission of crimes to support the habit, including theft, assault and acts of aggression. Often, the solution is to throw these offenders into an overcrowded prison system alongside violent and repeat offenders. However, alternative dispute resolution processes like mediation offer several advantages over this traditional approach.

The historical approach often leads to negative consequences. The victims may feel frustrated by the complexities of the justice system or feel that their voice is taken away by prosecutors who form their own deals with offenders. Offenders are often given a harsh sentence that does not take into consideration the struggle that they endure because of a drug problem. The prosecutor also faces possible risks of prosecution, including unpredictable witnesses, lost evidence, lack of information and a disappointing outcome for the victim. Judicial systems benefit from cases being removed from the docket and worked out between the parties. Courts save time, resources and expense by the case being rerouted through mediation.

If the parties agree to mediate their case, the mediator works to get the parties communicating effectively together. Mediators usually do not offer advice and they do not impose decisions. Instead, the mediator encourage good communication and help the parties explore possible solutions to their problem. If the parties reach a mutually-satisfactory restitution agreement, the mediator puts it in writing.

Through mediation, the parties may agree that the defendant should seek drug and alcohol counseling and rehabilitation. Because the defendant voluntarily agrees to this, he or she may be more inclined to follow through than if someone sentences him or her to this fate.

What You Need to Know About Medicare Mediation

Mediation can be used to help resolve disputes in an array of practice areas, including insurance and Medicare claims.

About the Process

Mediation is assisted negotiation in which a trained neutral third party assists parties try to resolve their legal dispute. While litigation places parties as adversaries to each other, mediation focuses on the parties working together to solve a mutual problem. The process begins with an introduction of basic rules and then the mediator may break up into private caucuses with each party to better understand the legal issues involved and to move the parties toward an amicable solution.

Benefits of Mediation

Mediators are trained in effective communication and conflict resolution skills. Mediators use these skills to help parties get a broader understanding of their case and the drawbacks of continued litigation. Mediation is a voluntary process. The parties do not have to go through this process unless they agree to do so. Once they are at mediation, they can fully participate in the process. This allows them to have greater control over the possible resolution of their claim. Mediation is typically more affordable than continued litigation and the need to pay ongoing legal fees. What is said in mediation is kept confidential, so the parties can freely communicate without worrying about things they say being repeated at a later point in the process.

When Mediation May Be Effective

Mediation can be effective in a variety of situations. It can be a viable solution if the parties have reached an impasse in communication, when they are interested in maintaining confidentiality, when they do not need to establish precedent for other cases or when only one solution is possible under the circumstances.

Implementing Mediation in Hurricane Claims

When a hurricane hits, sizable damage can occur. Entire communities can be devastated. Property owners may feel real losses as they try to get their lives back on track. However, insurance companies are often under immense pressure during these times. Emotions may be elevated. Problems can become even more pronounced when hurricane claims are denied. Mediation can help resolve many legal issues related to claims, including:

Coverage

Disputes may arise when the parties do not agree about whether claims are covered under the policy. There may be differences in claims related to water or flood damage as opposed to wind damage. Certain natural events may be excluded altogether. A payment issue may have caused a temporary lapse to occur when a hurricane struck. Insurance companies and property owners may be able to resolve coverage disputes with the help of a trained third party neutral.

Evaluation of Property Claims

One of the most common disputes related to insurance claims is the cost to repair or replace damaged property. It is not uncommon after a natural disaster for local contractors to take advantage of the situation and to provide high quotes for repairs, leaving property owners and insurance companies at odds. Mediation can help provide efficient resolutions of these disputes. A mediator may be able to recommend options that both parties may agree to, such as choosing a neutral third party to complete an appraisal of the cost of making such repairs.

Fraud Claims

Insurance adjusters may be concerned about parties trying to take advantage of a natural disaster by making claims based on damages that were not otherwise covered. Property owners may be concerned that insurance companies are fraudulently denying their claims. Mediation can help clear up misunderstandings and avoid fraud claims from either side.