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Is it legal for school lender to access bank accounts for payment

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Is it legal for school lender to access bank accounts for payment in New York State?
Hi, my name is XXXXX XXXXX I thank you for your inquiry. I have been practicing law for 19+ years and look forward to assisting you.

The lender, if it has the appropriate ACH transfer permission paperwork, can utilize same for that automatic payment. In fact, some lenders even provide a discount on the interest rate for the loan, if a student includes this paperwork permission in his lending paperwork. I have not noted an prohibition by NY state on this type of agreement, if I am understanding you correctly.

Now, if one doesn't agree to such auto payments, then the only way the lender can force that payment to itself is generally by securing a judgment due to default, and then garnishing/levying bank account.

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