Student Loan Relief Attorneys in New York

Resolving Student Loan Issues in New Jersey and Pennsylvania

Student loan debt is a major problem in this country, and if you are one of the millions of consumers trying to resolve their defaulted student loans, you need a firm you can trust to guide you in the right direction. Graham & Borgese has helped countless people across the nation deal with their student loan debt. 

We are knowledgeable regarding your various rights and opportunities, and among other things can help:

• Stop harassing debt collection calls
• Adjust your monthly payments
• Stop or prevent costly legal action
• Erase negative credit reporting

If you're facing student loan debt, contact our student debt attorneys in New York online or by calling (888) 801-7765 today!

Understanding the Impact of Student Loans on Your Credit Score

Student loans can have a significant impact on your credit score and overall financial health. While taking out a student loan is often necessary to finance an education, it is important to understand how it can affect your credit score.

When you take out a student loan, it will appear on your credit report as either a mortgage-style loan or a revolving loan. A mortgage-style loan is reported to the credit bureaus each month and will affect your credit score, while a revolving loan does not report monthly and has no impact on your credit score. Additionally, student loans are considered installment debt and this can have an effect on your credit utilization ratio, which is the amount of available credit you are using. If your student loans use up a large portion of your available credit, this can have an adverse effect on your score.

Late payments and defaults on student loans can also have a negative impact on your credit score. Missing the due date of any loan payment will typically cause late fees to be assessed and may even lead to defaulting on the loan. Both late payments and defaults will be reported to the credit bureaus and can harm your credit score.

Comparing Federal and Private Student Loans

As you may be aware, there are several important differences between private student loans and federal student loans — both in how they can be obtained and how they can be collected when a borrower defaults.

Understanding Private Student Loans

These are secured through a private lending institution and require a lawsuit in the event of your default to force repayment of the debt. Additionally, these types of student loans have an applicable statute of limitations like other written contracts, but the trade-off is that they do not afford borrowers the same type of repayment programs as federal student loans. Generally, these loans cannot be discharged in bankruptcy.

Exploring Federal Student Loans

These types of loans come in many different forms and typically offer better interest rates to borrowers. They do not have a statute of limitations like private loans, however, and do not even require litigation to force repayment of the debt. 

In fact, federal loans afford the lenders much more power to pressure or force you to repay the debts, including:

• Your income tax returns may be intercepted and applied to your unpaid loans.
• You will not be eligible to borrow more federal financial aid.
• You’ll become ineligible for deferments.
• You may not be able to renew a professional license you hold.
• You may be prohibited from enlisting in the armed forces, among other things.

Because of the significant power these lenders have in collecting the unpaid loans, they are required to offer several programs to assist in repayment that private student loans do not need to offer, such as:

Benefits of Student Loan Consolidation

This allows the borrower to get a fresh start — renewing eligibility for new loans, grants, and even payment deferments. Consolidation also updates and improves the status of student loans on credit reports and eliminates the possibility of tax intercepts or other collection efforts. Government student loan consolidation programs are especially helpful because the borrower can choose from one of several income-based repayment plans. Consolidation loans, as the name suggests, serve to combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. As of July 1, 2010, the Direct Loan consolidation program is the only government consolidation loan program still available. This means that FFEL consolidation loans are no longer available.

Advantages of Student Loan Rehabilitation

This is an attractive option for individuals seeking to repair their credit report, because loan rehabilitation restores your student loans to their pre-default state and can erase any negative information listed with the three major credit bureaus. This, of course, will likely raise your credit score, making you a better candidate for obtaining future credit. While student loan rehabilitation is an extremely attractive option for those in default, it is only available once, and thus, a person must be financially prepared to meet the various conditions.

Call us today at (888) 801-7765 and schedule a consultation with our legal team to know your options.

Frequently Asked Questions

What Rights Do I Have if I’m Sued for Student Loan Debt in New York?

If you are served with a lawsuit for student loan debt—especially regarding private or refinanced loans—in New York, you are entitled to a strong legal defense. State law mandates that creditors present valid documentation before seeking a judgment and must file suit before the statute of limitations expires (which may vary by loan type). You have the right to respond to any court summons, and it’s critical to act promptly to avoid default judgments. A student debt attorney in New York can evaluate creditor paperwork for errors, raise legal defenses, and challenge unlawful or improper collection practices. Additionally, New York offers enhanced consumer protections that safeguard borrowers from aggressive collection activity. Courts may also require creditors to provide extensive evidence before granting a judgment. Prompt, informed legal representation is crucial to protect your rights.

Can Federal or Private Student Loans Be Discharged in New York Bankruptcy Courts?

Student loans are typically challenging to discharge in bankruptcy, but in New York, the process is conducted within federal courts and requires an adversary proceeding. Here, you must show that repayment would cause “undue hardship,” a legal standard determined by federal law but also influenced by local judicial precedent. Some New York district courts, such as those in the Southern and Eastern Districts, have established their own interpretations for evaluating the hardship standard. 

While discharging federal loans is rare, certain private loans may be eligible under specific circumstances, such as if the loan doesn’t meet the statutory definition of a qualified education loan. Due to these complexities, consulting a student debt attorney in New York with a detailed understanding of local bankruptcy courts and procedures is highly recommended for anyone pursuing this path.

What Happens if My Student Loans Are Sent to Collections in New York?

If your student loans are sent to collections while you reside in New York, you benefit from protections at both the federal and state levels. The New York Department of Financial Services enforces regulations requiring third-party collection agencies to follow strict consumer protection laws, such as limiting harassment and requiring clear documentation. 

Federal loans sent to collection may result in tax offsets ordered administratively, while private student loan collectors must file a lawsuit in a New York court before enforcing repayment. As your legal advocates, we guide you in responding to collection notices, exploring repayment or forbearance options, and negotiating settlements within the bounds of New York law. We also ensure that collectors comply with state regulations to help protect your rights throughout the collection process.

Reach out to our student debt attorneys in New York now and let us find the legal tools to assist you.