Tens of thousands of borrowers will likely see their private student loan debt erased due to a technicality- missing paperwork and incomplete ownership records. One of the largest owners of private student loans in the U.S., The National Collegiate Student Loan Trusts is at the center of a legal dispute involving at least $5 billion in student loans, the New York Times reports.
Judges have dismissed dozens of lawsuits filed by the lender against student borrowers due to the lack of documentation proving the loans are even owed. The National Collegiate Student Loan Trusts, which includes 15 trusts that hold 800,000 private student loans, has brought tens of thousands of lawsuits in the past five years against borrowers who have fallen behind on their payments. The trusts hold loans totaling $12 billion and more than $5 billion of those loans are in default. The mix up occurred when the loans, which were originally made by banks, were sold to lenders and the ownership records were lost in the process.
Click here to read more on this story.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.