Syracuse, N.Y. -- Sen. Charles Schumer today called on two student loan companies to forgive the college loan of a young Syracuse man killed two years ago by a drunk driver. The driver pleaded guilty to motor vehicle homicide and was sentenced to five years in jail.



At a news conference in the James M. Hanley Federal Building, Schumer demanded that American Education Services (AES), in Harrisburg, Pa. and Education Investment Finance Corporation (EIFC), in New York City, discharge a loan held by David and Rose Prior, the parents of Andrew Prior. Priors would not say how much the loan is.

The Priors, who accompanied Schumer, say their attempts to work out a deal with the lending company have been unsuccessful, that they have been harassed by AES and threatened with loss of their car and home.

Schumer characterized the loan companies' as "cutthroat" and called the pursuit of repayment "unconscionable".

A spokesman for AES said his company is only a loan service agent that is obligated under contract with EIFC to pursue repayment.

“We’re relatively powerless to do anything,” said Keith New, an AES spokesperson. “We’re certainly sympathetic.”

New said that because some college loans, like this one, are not federally guaranteed, parents sometimes purchase life insurance on their child to cover situations like this.

Messages seeking comment from EIFC were not returned.

U.S. Sen. Charles Schumer calls on two private loan companies - American Education Services and Education Investment Finance Corp. - to forgive an outstanding student loan for Andrew Prior, who was killed by a drunk driver in a hit-and-run accident in 2010. Schumer appeared with David Prior, Andrew's father, at a news conference at the James M. Hanley Federal Building in Syracuse on Wednesday, Feb. 20, 2013.

Andrew Prior, a graduate of Bishop Grimes High School and Northeastern University, in Boston, was struck while riding a motor scooter by a drunk driver on Nov. 13, 2010.

Andrew’s parents co-signed for his college loans. Three other loans, one with a federal loan agency and two with private companies - Discover Student Loans and Education Empowerment Fund - were forgiven, David Prior said.

"It is required for federal loan providers to nullify debt when the primary borrower passes away," Schumer said. "And most private lenders, like Sally Mae and Wells Fargo, have established similar policies."

Schumer said he would look into legislation or other steps to insure lenders cannot put families in similar situations through the kind of emotional and financial stress the Priors have experienced.

"There are all kinds of federal hooks into these companies and I will explore every one of them," he said.

AES has not responded to his request to forgive the loan, Prior said, but continued to send bills with increasing interest and late fees that lower the Priors’ credit rating.

Until this week, the Priors thought that AES was the lender, Prior said.

The loan serviced by AES was originally taken out with a different company that went bankrupt before Andrew died, Prior said. The first company to contact them about the loan was AES, Prior said.

A month ago, the Priors' oldest son, John Prior, wrote Schumer’s office seeking help. Schumer aides discovered that EIFC, not AES, was the lender.

"The latest bill came in the mail today," Prior said. "Frankly I can’t pay it. This is the third child I’ve educated and I just don’t have the means."

Contact Dave Tobin at dtobin@syracuse.com or 315-470-3277.

