Legal Question in Credit and Debt Law in New York
offer letter
Hello,
Iam trying to close out an old (20yrs) student loan. I want to make an offer to pay off the balance. If I send a check with a letter that states: By cashing the enclosed check (number 123) in the amount of XYZ you accept this as final payment for account number 123456. Is this legal and does it stand up in a court of law if it is clearly identify on the check and in a letter?
If not, how can I reduce the balance of a student loan that is this old? Any advice is greatly appreciated.
1 Answer from Attorneys
Re: offer letter
it depends on a number of factors one of which is whether the loan is a federally guaranteed student loan. My experience is that if it is, you cannot reduce it. Otherwise, you should contact the creditor and try to settle over the phone and wait for something in writing from them. Your notation on the front of the check means nothing. Only writing on the back of the check will create a legal condition to the negotiation (the back is where the check is negotiated) and they can avoid that my writing their own statement on the back that negates it. Sometimes a bank won't negotiate a check where the endorsement is qualified...so I suggest you deal directly and hope for the best.
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