nsucurrent.com
nsucurrent.com October 23, 2017


Missing Paperwork May Erase $5 Billion In Student Debt

20 July 2017, 12:51 | Ruby West

Private student loan debts are being erased because of incomplete and missing paperwork

Private Lenders Struggle to Prove Ownership of Student Loans in Court

According to a new report by the New York Times, thousands of student loan recipients may be off the hook when it comes to paying back their debts, thanks to some critical missing paperwork on the part of the lenders.

Are my loans owned by National Collegiate? . Over and over, she said, the company drops lawsuits - often on the eve of a trial or deposition - when borrowers contest them. The trust organization is facing trouble proving in court that it has the legal paperwork to prove ownership of its loans.

In an unusual situation, one of the financiers behind National Collegiate's trusts agrees with some of the criticism.

The Times found that judges in several states have thrown out lawsuits brought by National Collegiate Student Loan Trusts, an umbrella name for the multiple trusts that hold $12 billion in private student loan debt.




Document: National Collegiate's Audit of P.H.E.A.A. So, basically, this haphazard record-keeping means that if the trust attempts to go after a student or graduate who has defaulted on their loan, they might not be able to serve the call and, instead, have to write off the entire amount of the debt.

The 15 trusts have led a serious offensive to track down the borrowers who fall behind on their student loan payments. Because of those steep rates, the size of the loans can quickly balloon, leaving borrowers to pay hundreds and, in some cases, thousands of dollars each month. If you have enrolled in a for-profit college program, keep records of all of your interactions with the school and find out of you are eligible for Borrower Defense Repayment. Federal student borrowers can apply for a discharge in those circumstances, but private borrowers cannot.

The trusts win numerous lawsuits they file automatically, because borrowers often do not show up to fight. If you don't show up in court, National Collegiate (or any other private loan company) will win a default judgment-giving it a court order to collect your debt. But some cases that are being fought by lawyers have revealed the problems.



Other News

Trending Now

The real reason Harry Styles isn't in Dunkirk trailers
Harry Styles soaked up the adulation from an army of screaming fans but suggested this could be his only movie premiere. It was held at London's Odeon Leicester Square, and as almost always, Styles made an appearance in head-to-toe Gucci .

Mass Effect Andromeda - Free Demo
It's the same trial that was originally available to EA Access members but you won't need a membership to download it this time. Since its launch this past March, Mass Effect Andromeda has been received with mixed reviews .

This is how PlayerUnknowns's Battlegrounds next update gets a lot more hardcore
Creator Brendan " PlayerUnknown " Greene made the announcement on Twitter today, with the updated slated next month for NA/EU solo and duo matches.

Evacuees return, damage measured as wildfires wane
First Nations are standing their ground, saying they want to protect their homes and property as they have done for generations. Officials are urging people to respect evacuation orders issued due to wildfires across the province, but some B.C.

DeLand sky diver sent wife video foretelling suicidal plunge
Police say in the video Vitantonio told his wife he was " not going to pull the cord and that he was going somewhere wonderful ". Vitantonio's was employer was United Parachute Technologies , which is also based in DeLand, according to Time.

May's cabinet 'tearing itself apart' over European Union negotiation
Asides from the exit bill, the four-day negotiation will focus on citizens' rights and the border in Northern Ireland, among other issues.

Commuter complaints few as Penn Station repairs begin
It means those traveling to work from Hoboken and Jersey City will notice an increase in crowd numbers at Path stations. And if you're one of those commuters, you also know that things were not ideal before today's track repairs began.

Latest Price movements of Stock: Dominion Diamond Corporation (DDC)
The basic materials company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.04. In addition to Citigroup reporting its stock price target, a total of 8 brokers have issued a research note on the company.

Samsung Pay adds PayPal as a valid means of payment
PayPal is focused on delivering seamless mobile commerce experiences and extending this reach through strategic partnerships. What's more, PayPal Braintree support also means that online merchants will also support the payment option.

Washington at loggerheads over Russian Federation sanctions
North Carolina Senator Thom Tillis said lawmakers shouldn't be "distracted" by the Trump emails. Trump Jr. tweeted Monday that he was "happy to work with the committee to pass on what I know".