Editor's choice: National Debt Relief
- No cancellation fees
- Low minimum to enroll
- No upfront fees
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New York only regulates student loan debt relief companies — and it doesn't require companies to be licensed in New York. But if you're a New York City resident, you take advantage of free credit counseling from the city. If you live in another area or are interested in another service, make sure your debt relief company is legit before signing up.
New York State has few debt relief regulations to protect consumers. The state financial code mainly prohibits companies from predatory student debt relief practices, especially when it comes to federal student loans.
But most debt relief companies don't offer this service anywhere in the country, thanks to a federal crackdown on student debt relief in 2010. For the most part, New Yorkers have to rely on the Fair Debt Collections Practices Act (FDCPA) for protection.
New York prohibits companies that offer student loan consultation, or assistance with handling student loan repayments, from the following activities:
It also prohibits student loan debt relief companies from "engaging in unfair, deceptive or abusive acts or practices" — but doesn't define these terms.
As a New York resident, you have access to the following options when you're struggling with debt.
Since New York doesn't require debt relief companies to be licensed, it's on you to make sure a company is legitimate before signing up. Here's what to look out for:
Compare providers using this table to narrow down your search.
New Yorkers have a better hold on their debt than almost any other state. The median debt-to-income ratio was 0.93 at the end of 2019, according to the Federal Reserve. A DTI lower than 1 means you owe less than you make each month.
Residents of the Empire State had an average debt load of 51280 by the end of 2019, according to another Federal Reserve study. Here's how that breaks down:
New York doesn't have as many protections against debt relief companies as other states like California. So you have to do a little research yourself before signing up for a company.
Get started on your debt relief search by reading about our list of the best debt relief providers.
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