Let me tell y’all about how good my God is!! Thousands of people who took out private loans for college are rejoicing, because many of them are getting their debts wiped away! The NY Times is reporting that judges have been dismissing lawsuits filed by creditors against former students since certain documents which prove ownership of the loans have mysteriously gone missing! The sum of all of these loans is about $5 billion.
Via NY Times:
“At the center of the storm is one of the nation’s largest owners of private student loans, the National Collegiate Student Loan Trusts. It is struggling to prove in court that it has the legal paperwork showing ownership of its loans, which were originally made by banks and then sold to investors. National Collegiate’s lawyers warned in a recent legal filing, “As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.”
National Collegiate is an umbrella name for 15 trusts that hold 800,000 private student loans, totaling $12 billion. More than $5 billion of that debt is in default, according to court filings. The trusts aggressively pursue borrowers who fall behind on their bills. Across the country, they have brought at least four new collection cases each day, on average — more than 800 so far this year — and tens of thousands of lawsuits in the past five years.”
Now, if we could just get one of these hackers to get Miss Sallie Mae together, then all will be right in the world!
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