https://www.nytimes.com/2017/07/17/business/dealbook/student-loan-debt-collection.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0
Posted on 07/18/2017 10:23:07 AM PDT by bgill
Billions of dollars in student loans may be wiped out for tens of thousands of borrowers in the US because a lender didn't keep track of the paperwork verifying ownership of the loans, according to The New York Times. The National Collegiate Student Loan Trusts, which holds 800,000 private loans and is one of the country's largest owners of private student loans, is at the center of the legal dispute, the Times reported. Borrowers are failing to repay more than $5 billion of the $12 billion in private student loans held by National Collegiate, sending the loans into default. The organization has brought more than 800 lawsuits against borrowers this year alone in pursuit of repayment — and National Collegiate usually wins because borrowers either choose to settle or don't show up in court.
(Excerpt) Read more at businessinsider.com ...
You must be out of sync. Because you can pay you should [sarc off].
These are private loans through a private bank, not federally insured loans; not seeing how the taxpayer will be involved.
Same situation exists in the mortgage market. They thought that moving from paper to virtual would be easy. Not so much. Odds are if you’re foreclosed on and call their bluff the lender can’t produce the note.
This is the way the law has been since our founding. It’s the fault of these lenders for their sloppy paperwork handling.
The way I read the report these are private loans not backed by the government.
So any loss is sustained by whoever bought the loan from the original lender if they cannot prove ownership.
That’s not to say some politician won’t sneak a bill through to use taxpayer money to bail out the lenders.
Sounds like these are private loans, the investors are the ones to loose. The end of the article says this:
“Notably, federal student loan borrowers have the ability to apply for loan forgiveness or a loan discharge, like in the case of an incomplete degree from a now-defunct for-profit college, while private borrowers do not. “
I do document Imaging.
I’ve seen lower bid companies try to do the work. Not pretty.
And we’ll be bailing out the lenders in 10.. 9..8 ..7.
Lost my a$$.
According to the article these loans got bundled and traded back and forth, just like mortgages. And just like mortgages a lot of the supporting paperwork never made it to the ultimate owner of the debt.
Did you even read the article? These are private loans. Why should taxpayers get involved?
Lost my a$$.
************
CORRECT ,, The originals are intentionally shredded after imaging ... also these loans have been sold and resold without proper documentation maybe half a dozen times ,, nobody can prove who is the owner and is owed repayment... This is the reward for stupidity that these investment companies reap.
Which tranch do you want, A B C D? The joke on the buyer of the notes. They are all bad. There is nothing behind any tranch except worthless degrees.
This happened with a friend. They lost all his mortgage documents & in the end he was off the hook for 90k.
Don’t they verify that they have the supporting documentation before they finalize the sale of these loans? I’m.shocked that they wouldn’t make sure all ducks were in a row before they make the payment to buy loans.
What colleges/universities did these people attend? Is there a profile of a typical student whose paperwork is now ‘lost’?
https://www.nytimes.com/2017/07/17/business/dealbook/student-loan-debt-collection.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0
Look into who got it wiped out.
And they didn’t just “loose the note”.
Sure, why not? Someone has to do it.
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