This $5 Billion Student Debt Lawsuit Might Mean You’re Owed Big Bucks
That's a whole lot of ramen.
“Back in my day,* I worked one shift every other Tuesday at the five and dime and was able to pay for six years of schooling! (*my day always refers to the summer of 1952)” says an older relative of yours. Way back when, a college education could be had on the cheap, but times have changed drastically, and so has the price point. If you’re like most college-educated Americans, you have quite a bit of student loan debt from your time in school—unless your parents took advantage of these money-saving tips for sending their kids to college without loans.
But, depending on where you took out your loans, you might be owed big bucks. Or rather, you might no longer owe big bucks. As reported by the New York Times, one of the largest holders of student loans, National Student Loan Trusts, is having five billion dollars worth of student debt completely cleared from its books.
The issues for NSLS arose when the entity attempted to collect thousands of delinquent payments from borrowers, but failed to produce any documentation to prove that the debt was in its possession.
NSLS is not the original lender of the loans, but is a purchaser of them; frequently with private loans, the money is given to the borrower by a bank or other lender, and is, in turn, sold off to large umbrella trusts like the National Collegiate.
This doesn’t necessarily affect every loan owned by the National Collegiate, just the loans with dubious claims about proper documentation. In short, poor record keeping is leading to these loans being “forgiven,” but according to debt relief attorney Daniel Gamez, the National Collegiate can still refile their grievances in court at a later date. The debt may be seemingly out of mind, but it could still come back to haunt you and your credit score. And everybody knows a good credit score is just plain sexy.
Congratulations, your not good-for-making-money college major was worth every single penny at that overpriced liberal arts school! Treat yourself to a nice $99 trip to Europe or an excessive post-grad degree.
[Source: Mental Floss]