STUDENT LOAN DEBT SETTLEMENT
NEW YORK LAWYERS
Are you interested in settling your federal or private student loans for a reduced amount?
Generally, an account must be in default status in order to possibly qualify for a student loan settlement. There are big differences in the guidelines that are used by collectors on federal student loans as opposed to the agencies that collect on private student loans.
Our lawyers have helped numerous client's in New York with resolving their federal loan debts with the Department of Education, New York State Higher Education, and their servicers such as AES, Navient, Performant, Allied Interstate, Enterprise Recovery Systems, Transworld Systems, FAMS, GC Services, Windham Professionals, West Asset Management Inc, and other private collection agencies under contract with the DOE.
With respect to private student loan settlement, the debt lawyers at our New York City office have been successful in resolving and sometimes negotiating substantial settlements on private loans such as Sallie Mae, Key Bank, Chase, Discover, Arrowood Indemnity, Citibank, United Guaranty, Wells Fargo, and National Collegiate Trust with collectors at Navient and Weltman Weinberg & Reis, and law firms such as Forster & Garbus, Roach & Murtha, and Zwicker & Associates. Our attorneys have also been able to settle student loan lawsuits and have many times achieved significant reductions.
Example of a Sallie Mae Private Student Loan Settlement
In early 2014, the Law Office of Simon Goldenberg PLLC was retained to assist an individual with respect to 7 defaulted private student loans owed to Sallie Mae, with a total balance exceeding $250,000. Due to underemployment, my client was earning inadequate income to make the minimum payments that Sallie Mae demanded, and therefore, he defaulted on his payment. The client was concerned about the possibility of a student loan lawsuit and he was interested in reducing his obligations to Sallie Mae. He has the ability to borrow funds from a family member in an effort to resolve his private loan debt.
Nearly one year later, our lawyers were able to negotiate a settlement in full in the amount of $80,000, to be paid in two monthly payments. The negotiation on the Sallie Mae accounts were performed with the debt collection agency of Capital Management Services. This remarkable settlement helped the client reduce his student loans by over $170,000, and he was able to avoid the accrual of future interest. His concerns about a lawsuit being brought against him were eleviated, and he was able to proceed with his life unencumbered by this massive private student loan debt with Sallie Mae.
Example of a Key Bank Private Student Loan Settlement
In June 2014, a Client contacted our law firm for assistance with 5 private student loans with Key Bank with an outstanding total balance of roughly $75,000. She had fallen under hard times financially and consequently defaulted on her loans. However, her financial circumstances improved, and she was able to put some money in savings, and borrow some money from a friend to try to address her student loan debt. She was concerned about a lawsuit being brought against her and she was seeking help to resolve the loan through debt settlement.
In just 5 months, our lawyers negotiated a settlement on the private loan debt with the collectors for Key Bank, Allied International Credit, to satisfy the full balance on all 5 accounts for $25,000, to be paid in 3 payments. This settlement achieved a reduction of nearly $50,000 and avoided concerns about the possibility of a lawsuit and becoming liable for more interest.
Example of a Federal Student Loan Settlement with NYHESC
A client sought the assistance of our law office in reference to government-backed student loan debt with Access to Loans for Learn with New York State Higher Education (NYHESC) for an outstanding loan with a balance of nearly $30,000. The client had moved abroad and had not made payment on this loan for many years, which caused a substantial amount of collection fees and interest to accrue. For at least a period of time, NYHESC was charging a collection fee of 16.2%.
His family member offered to lend him money to resolve his loan with NYHESC, and as such, he was interested in seeing if he could pay a reduced amount to satisfy his oblication to New York State Higher Education. Our lawyers requested documents substantiating his original promissory note and payment history so that the client could verify that the debt was accurate before we commence negotiations.
As part of the representation, our attorney drafted a hardship letter on behalf of the client and sent it to the Department of Education along with an offer. The account was ultimately settled for $21,740, which helped the client eliminate a portion of the collection fees and interest, and allowed the client to satisfy the debt while saving about $8000. He no longer had to be concerned about more interest and collection fees accruing and the risk of wage garnishment or tax offset in the event that he returns to the country and earns income.
Student Loan Settlement Lawyers in New York
The success stories listed above are not "typical". They are merely examples of what our lawyers have been able to achieve on a private loans. Each case and client is unique, and prior results are not indicative of future performance. Many of our other client's have enjoyed private loan settlements that oftentimes falls within a range of 50%-70% off the total outstanding balance. Some client's also have greater and lesser settlements then this range. A client's hardship, financial status, and other factors can impact the nature of the debt negotiations. The lender, creditor, status, and length of delinquency are also factors that play a role in the settlements.
Our lawyers offer assistance to people in New York seeking to resolve their federal and private student loan debt. We offer a free initial phone consultation to determine how we may be of assistance in your particular matter.
If you are seeking an evaluation to determine whether you may be a candidate for a student loan settlement, contact our law firm today.
