New York | Credit and Debt Law
Legal Question
I am a public defender for the past 14 years and have suffered under an onerous loan. Recently, a family member offered to pay my loan but as a condition precedent of receiving this gift I must negotiate a reduced settlement of the total amount owed. I contacted my law school loan provider who advised me they will not do so because they cant because it is a federally guaranteed loan. I have heard of many people who have been able to negotiate settlements of their loans and was hoping your organization could lead me to resources or a company that can help me. . Thank u for any assistance you can provide
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Legal Answer
The fact that the loan is guaranteed had no legal bearing on the creditor's ability to negotiate it. The unfortunate fact is that because it is guaranteed AND because you have a steady job and are paying it off, they have no WILLINGNESS to negotiate. I can assure you that if you were to default on this loan, they WOULD be willing to negotiate the terms with you. Your best bet would be to write them a letter indicating your financial hardship and request a forebearance for six months. You can then seek additional forebearances every six months until you're capable of paying again.
Good luck!
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Law Offices of Jason Stern 420 Lexington Avenue - Suite 2750 New York, NY 10170
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