Options for Help with Student Loans in New York

If you are having a hard time either paying or figuring out which option is best for you to pay down your Private or Federal student loans, The Law Offices of Kenneth H Dramer PC will be able to help you! If you are just coming off your grace period, have fallen behind on payments, are in default on your payments, or even in collections or being sued – OUR NEW YORK DEBT LAWYERS CAN HELP!!! CALL NOW for a FREE CONSULTATION 1-888-314-1722

Options for Help with Student Loans

In today’s economy with the lack of job opportunities, you may be struggling to find work even to survive, let alone start to pay back what seems like an enormous amount of student loan debt.  If you are struggling to pay your student loans and qualify for help, our Student Loan Debt Relief Attorneys may be able to help you to lower or postpone your payments, reduce your outstanding balance, or possibly even have your loans canceled and forgiven.

At Dramer Law, we offer multiple choices depending on your hardship and current income.  Some options allow for payment flexibility in case your situation changes with regards to your income or health from time to time.  Many choices we will discuss are available for all types of loans while other options only apply to certain types of loans.

There are many different way that we can help.   Click on each of the five links below to open a new tab that will describe more in detail which loans qualify for each option.

Before we’re able to help with your student loans, we must first establish what type of loans you have and therefore which option will be best.

A Student Loan will either be a Private Loan or Federally Backed

All student loans are either Federally Backed or Private.  Federally backed loans can be either loans obtained directly from the federal government or loans issued by non-government entitiy that are guaranteed by the federal governmentPrivate Loans are loans from banks that are not guaranteed by the federal government (some schools also offer direct private loans as well).

If you have a Private Loan, other than the usury laws of your state, there are no interest rate caps on private loans like there are for federally backed student loans, but there are time restrictions in which they have to enforce their collection efforts.  Since the Truth in Lending Act (TILA) govenrs private loans, a fundamental way to tell a private loan from a Federal loan is the presence of disclosures, like you’d find on credit card, car loan, or mortgage loan statement. Privately funded loans do not typically have many repayment options available like federally backed loans, and qualification is determined on a bank-by-bank and loan-by-loan basis.  On the positive side, if you are delinquent with your payments, private student loans can typically be settled for less the the current amount owed, potentially saving you thousands of dollars.

Sallie Mae seems like a Federal agency, but, it is a private lender, and by far the nations largest.  On October 13, 2014, Sallie Mae, split up into two different entities – one that handles servicing of federal loans, named Navient, and the other division remained Sallie Mae, which now strictly provides private student loans.

Most of the loans issued since 2010 are straight from the government through the “Direct Loan Program.”  Any Direct Loan is without a doubt federally backed.  Before 2010, many loans given by private lenders are still guaranteed by the federal government, making them federally backed as well.  Federal loans are typically named either Direct Loans, Stafford Loans, PLUS loans, or Perkins loans.

If your student loan was taken out from a private bank but is backed by the federal government, it doesn’t mean upon default, the loan will be paid off for you by the government, thus relinquishing you of your responsibility to pay.  What would happen is if you default, the federal government will pay off the bank, then you would owe the money to the federal government instead.  In other words – YOUR LENDER IS PROTECTED, BUT YOU ARE NOT

The government has virtually no limits to how they can try to collect what they are owed.  Their collection efforts do not even require court orders.  They can:

  • put lien on your property,
  • levy your bank accounts,
  • take up to 15% of your disposable pay wage garnishments,
  • take tax refunds known as “Tax Offsets,” and
  • take some types of Social Security known as “Federal Benefit Offsets.”
  • All this while charging substantial collections fees with no time restrictions imposed upon them!

If you are struggling to pay your federally backed loans, thankfully, there are many different consolidation and relief programs available to help you.  Although federally backed loans are not likely to accept a settlement for less than the amount owed, there are ways, in limited situations, to discharge federally backed loans in certain cases – without filing for bankruptcy.

Have BOTH Federally Backed & Private Loans?

Since there are different options available for each type of loans, if you have both private and federally backed student loans, we typically advise starting to deal with the loans that are causing the most significant burden for you, but rest assured, we can help with both private and federally backed loans!


Federally Backed Loans – Subsidized vs. Unsubsidized

One of the most critical differences in the Federally backed loans we come across is whether or not the loans were subsidized.  Being subsidized or not will tell you who is required to pay the loan interest while you’re in school. While you are in school or on deferment, the Federal Government pays the interest on subsidized loans, but with unsubsidized loans, you are responsible for the interest.  If the loan is unsubsidized, you are not required to pay the interest, but if you do not, the interest will accumulate and be compounded or capitalized into the outstanding balance.  If you can make payments while in school, you should, as doing so will help to reduce the overall total loan payback amount, as the interest will not compound on as large of a balance.

The following Federal loans are eligible for assistance:

  • Direct Loans (subsidized or unsubsidized)
  • Federal Stafford Loans (subsidized or unsubsidized)
  • Federal Perkins Loans
  • Direct PLUS Loans
  • Federal Family Education Loans (FFEL)
  • Health Education Assistance Loans
  • Federal Nursing Loans
  • Supplemental Loans for Students (SLS)
  • Parent PLU loans
Enrollment Status and Student Loans

Each school has a different guideline as to the enrollment status that determines if you are at least part-time (also referred to as half-time) or not.  If you are no longer at least half-time status because you have either: graduated; are still attending some classes but are not enough to be considered half-time; have taken a leave of absence; or decided not to continue your schooling, then, unless your loans have been deferred, you will be required to make payments again once your grace period has come to an end.

Honest Advice from Our Student Loan Lawyers

The Law Offices of Kenneth H Dramer PC and our debt lawyers have no affiliation with any creditors, banks or other lending institutions! The lack of affiliation means that we are not here to keep you paying interest for as long as possible like many banks, but instead, we will make sure you choose an option based on your situation that will cost you the least amount in interest over time!  Any of our Debt lawyers will work for the benefit of our clients and not for those you which you owe money.


To find out what type of loans you have and to see how we can help, please click here to download our Prequalification Questionnaire and send it back along with your proof of income.  We’ll be able to find out any information on your loans including how much you owe, to who, the rates, etc.  If you’ve received any grants, we’ll be able to see the information on those as well, but thankfully you won’t have to pay those back!

Call Now to Learn Which Student Loan Relief Option is Right for You!

The Law Offices of Kenneth H Dramer PC specializes in helping people in a safe, open-access manner in the New York City and Long Island area as well as Upstate NY and many states throughout the country.  If you are struggling with your student loan payments, give us a call to understand your alternatives. Working with the assistance of a lawyer that deals with Student Loan issues constantly, not only grants you protection against unscrupulous debt collection agencies, but will also help to organize and explain the entire process so that you understand precisely how to proceed. There is absolutely no obligation, so don’t hesitate to give us a call at 888-314-1722 or visit our Contact Us page to learn how you can get out of debt and return to a healthy financial future.

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*Individual results may vary based on consumer’s earnings, assets, and current financial situation.  Our law firm does not assume or pay any clients’ loans, nor provide credit or tax advice concerning any forgiven amounts. Student loan relief options do not obtain immediate repayment arrangements.  Services not available in all 50 states.

*Be wary of any company that tells you not to pay your bills as specific debt relief options may have a negative impact on your credit report and other consequences.  For example, your debts may continue to accrue late fees and penalties; you also may receive calls from your creditors and/or debt collectors; you could even be sued for non-payment.  If a creditor obtains a judgment against you, they have the right to garnish your wages or put a lien on your home.  Make sure you choose company that explains the benefits and consequences of each debt relief option.  Please read and understand all process terms before enrollment.

*The information provided on this site is for general information and educational purposes only.  The information presented should not be considered legal advice, and should not be misconstrued as such, and should most definitely not be acted upon without first consulting with an attorney. The information is subject to change without notice. Consult a debt relief lawyer licensed in your jurisdiction for specific advice.

*We provide Debt Relief services and are a debt relief agency, as defined by the U.S. Congress. We proudly assist people filing for bankruptcy relief under the Bankruptcy Code as well as various other services to help avoid bankruptcy.