It looks as if some college students and graduates may be in luck, because according to reports, a total of $5 Billion in private student loan debts may be wiped away for lack of paperwork.
According to the NY Times, the National Collegiate Student Loan Trusts is the company involved in the dispute with borrowers. The company filed over 800 lawsuits against borrowers in order to get their payments back, because borrowers have failed to pay back more than $5 Billion out of the current $12 Billion loans issued. Because National Collegiate has dished out so many lawsuits over the past few years, when some of the borrowers show up to court, they end up not having to pay because of the company’s lack of proof to show that the borrower owes money. According to reports, National Collegiate is frequently unable to prove that the borrower in court owes, which leads to dismissal of the case and a borrower walking out of court debt-free.
Source: NYTIMES
