Have you ever wish your student loans could disappear and never have to worry about another payment, defaulted or going into deferment for the 5th time? Well, today is your lucky day thanks one of the largest private loan lenders/trusts.
One of the many lessons we learn in college is to keep all necessary paperwork for a backup especially when it comes to registration and financial aid. It looks like one of the financial aid lenders, the National Collegiate Student Loan Trusts, did not take the same advice. According to The New York Times, National Collegiate did not “keep track of the paperwork verifying ownership of the loans.” With a lawsuit in place, one of the largest private loan trusts may dismiss thousands of borrowers’ private loans due to the clerical error.
National Collegiate brought 800 lawsuits this year alone against borrowers for non-repayment. When someone defaults on a loan either the person never shows up to court or they rather settle than be harassed by the government. Lenders usually win the majority of their default cases due to those two reasons mentioned earlier, but when someone actually fights back then no paperwork is available to verify that you own the loan or liable to repay.
One borrower, Samantha Watson, was unable to repay her student loans due to her daughter becoming ill. National Collegiate sued Watson for repayment but the case was thrown away because of missing and unorganized documents. Ultimately, Watson was $31,000 debt free of student loans. Don’t we wish we were all Ms. Watson?
Visit the Sallie Mae website, if you would like more information on private loans and the difference between private and federal loans. Also if you think you may have a private loan or being sued by National Collegiate, check out Consumer Help Central.
Originally blogged on Campus Lately