A recent report by The New York Times details how billions of dollars in student loan debts have the potential to be wiped clean because of lapses in paperwork tracking – mirroring what happened during the 2008 housing crisis.
At the center of this controversy is an organization called National Collegiate Student Loan Trusts. This is a group that purchased student loan debts from investors after they had been purchased from banks.
However, now they can’t locate the paperwork that proves who owns the loans. Absent that proof, the trust is unable to prove it is allowed to collect that debt, meaning courts have little choice but to dismiss the case – and the alleged outstanding debt. Continue reading