Also countless fraudulent loans to all kinds of people posing as “students” got wiped away too.
How does digital “paperwork” get lost?
The loan resellers and buyers should have learned from the subprime mortgage debacle. Caveat Emptor!
And not ONE WORD about STEPPING UP and PAYING what you OWE? Because THAT’S not THEFT for some reason?
I should’ve gotten on THAT Gravy Train! I could’ve used that cash to buy and flip more houses. I’d be rich, rich, RICH right about now!
*SPIT*
This is part of a vast left-wing (corrupt democrat) conspiracy to defraud the taxpayers. Just another Marxist wealth redistribution scheme.
Taxpayers among others will pay and others will gain. We need to know the names of all individuals and companies that lost the paperwork and yet will be made whole. Our system is corrupt and no one pays.
Figures; after I paid mine!
What BS. Government never “loses” records of what YOU owe THEM.
No backups?
How queer.
However, the taxpayers will eventually “own” this debt and no “judge” will find a way to get them off the hook.
Work harder, chumps.
I used to work in the student loan industry. My employer would purchase large volumes of student loan portfolios from banks, and we would get scores of banker boxes with the original files of paperwork. The files themselves were microfilmed (later digitized) and shredded...but we pulled the original applications, repayment schedules, and most of all the original notes—anything with a “wet signature”—and stored them in a vault, as if they were stock certificates or Treasury bonds. Because, in the eyes of the law, they were literal money. And we periodically got calls for the original notes, most often for subrogation to the Department of Ed or for court purposes...there was a strict chain of assignment followed and recorded.
What probably happened here is that, as with the mortgage securitization debacle, the original paperwork was digitized en masse and shredded, with no “wet signature” docs retained. So now...there literally is no legal proof of ownership of the debt.
Yeah, I remember when many people thought their mortgages were going to be wiped away in the Bank of America debacle. They found the paperwork.
Sometimes I feel like a real chump always paying back any loans I get.
If I loan someone money for a living I am going to keep my paperwork in order.
Stupid doesn’t pay.
But where did the money end up? At the colleges. This whole thing was a farce to send billions to “higher education.” Can’t get congress to cough up more for socialist indoctrination at our colleges? No oroblem, Obama had the answer.
Someone needs to do more than shrug this off as if it were an accident. If they don’t, next thing ya’ know everyone who worked in a democrat campaign will have their CC records vanish, their criminal records vanish, and etc.
Only could an entity like the US government eff something like this up. No private institution would “lose” borrowers’ information like that.
The USG has built digital data farms to survive EMP strikes and each of the DOD services, along with other agencies have constructed what I will only call an unspecified number. Having said that, banking data and library (of congress/books) are critical infrastructure. Banking data cannot get lost, period. Nor can the Library of Congress, the US Patient Office, nor military or intel info.
Is this the modern equivalent of all those courthouses burning down in the South during Reconstruction?