Billions in student loan debt could be forgiven because creditors do not have the proper paperwork.
National Collegiate Student Loan Trusts is one of the nation's largest owners of private student loans.
Have you taken out a private student loan to fund your education?
That's a big number, but it accounts for a relatively small fraction of overall USA student debt. Of those, roughly 166,000 loans, worth some $5 billion, are in default.
National Collegiate's troubled loans did not start out with the organization.More news: Dennis Hastert out of federal prison
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According to recent statistics, Americans owe more than $1.4 trillion in student loan debt. He is Donald Uderitz, the founder of Vantage Capital Group, a private equity firm in Delray Beach, Fla., that is the beneficial owner of National Collegiate's trusts. Private student loans account for around $108 billion of student loans, according to The Times. The New York Times reports that a review of court records shows many collection cases are flawed and have incomplete ownership records as well as mass-produced documentation. There are additional considerations.
Document: National Collegiate's Audit of P.H.E.A.A. There have already been 800 collection cases in 2017, and more than 10,000 lawsuits in the past five years. "It's not like they're rolling over on these cases", Gaudreau says.
If you've been served with a lawsuit, get an attorney.
Do not ignore the notice. That's because the people who had their debts erased were first sued by National Collegiate for being several months behind on their loan payments.
Smith also encourages borrowers to file complaints with their state attorney general and the Consumer Financial Protection Bureau, and to push state legislators to prohibit private student loan holders from obtaining judgments when they lack proof that they own the loans that are the subject of the lawsuit.