Thousands Of Student Loan Debts Could Be Erased

According to an article that recently appeared in Time Magazine, tens of thousands of students could have their student loan debt erased due to missing and incomplete paperwork.

The National Collegiate Student Loan Trusts, one of the largest owners of private student loans in the United States, is at the center of a legal dispute over at least $5 billion in loans.

Judges have already dismissed dozens of lawsuits due to a lack of documentation to prove that it owns the loans, according to the Times article.

Essence is reporting that National Collegiate — 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 loan payments. The trusts hold loans totaling $12 billion, and more than $5 billion of that is in default, according to court filings analyzed by the Times.

So what does this mean for thousands of graduates with private loan debt? We’ll keep you posted on this developing story.

@Robinrazzi


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Robin is a digital content creator and has worked in the digital space for nearly ten years. “Robinrazzi” is a nickname given from a former colleague and is a perfect integration of her name and one of her greatest hobbies of having a camera in hand to capture once in a lifetime moments like paparazzi. She has traveled the world covering entertainment, celebrities, events and anything trending. She holds a BA in communications from Penn State and MS in marketing from Johns Hopkins University. She currently serves as Digital Content Manager for WHUR and the Howard University Radio Network.

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