As Paperwork Goes Missing, Billions in Private Student Loan Debts May Be Wiped Away

NY Times via MSN ^ | STACY COWLEY, JESSICA SILVER-GREENBERG

[Libloather]

Tens of thousands of people who took out private loans to pay for college but have not been able to keep up payments may get their debts wiped away because critical paperwork is missing.

The troubled loans, which total at least $5 billion, are at the center of a protracted legal dispute between the student borrowers and a group of creditors who have aggressively pursued them in court after they fell behind on payments.

Judges have already dismissed dozens of lawsuits against former students, essentially wiping out their debt, because documents proving who owns the loans are missing. A review of court records by The New York Times shows that many other collection cases are deeply flawed, with incomplete ownership records and mass-produced documentation.

[Libloather]

One advantage to be on Hillary's secret server.

[Steely Tom]

Also countless fraudulent loans to all kinds of people posing as “students” got wiped away too.

[Paladin2]

How does digital “paperwork” get lost?

[IndispensableDestiny]

The loan resellers and buyers should have learned from the subprime mortgage debacle. Caveat Emptor!

[unixfox]

How does digital “paperwork” get lost?

Just like Hillarys emails. Duh.

[Keyhopper]

Another gift from Obama
Wonder how much we really got scammed for this time??
Well, at least it’s not there money

[Keyhopper]

Their

[FreedomOfExpression]

"How does digital “paperwork” get lost?"

Just like Hillarys emails. Duh.

Wiped, with a cloth?

[Diana in Wisconsin]

And not ONE WORD about STEPPING UP and PAYING what you OWE? Because THAT’S not THEFT for some reason?

I should’ve gotten on THAT Gravy Train! I could’ve used that cash to buy and flip more houses. I’d be rich, rich, RICH right about now!

*SPIT*

[Garth Tater]

If your original lender can't prove that they still own your debt you are under no obligation to pay them. If you do pay them and at a later date another entity shows up that can actually prove that they own your debt you will have to pay them - regardless of the previous payments you made to the unproven (fraudulent) owner of your debt.

Student loans, mortgages, bookies, it all works the same way. Make sure you are paying the real owner of your debt not just someone that presents themselves as such.

[Jim Robinson]

This is part of a vast left-wing (corrupt democrat) conspiracy to defraud the taxpayers. Just another Marxist wealth redistribution scheme.

[davius]

There’s no their there.

[apoliticalone]

Taxpayers among others will pay and others will gain. We need to know the names of all individuals and companies that lost the paperwork and yet will be made whole. Our system is corrupt and no one pays.

[Reverend Wright]

The loan resellers and buyers should have learned from the subprime mortgage debacle. Caveat Emptor!

I think they did. That's the problem.

[reg45]

Tony and Vinnie can make the collections.

[\/\/ayne]

Figures; after I paid mine!

[Lizavetta]

What BS. Government never “loses” records of what YOU owe THEM.

[Garth Tater]

You should pay what you owe. You just have to make sure you are paying the current owner of your debt - which is not easy to do these days. If you pay the “wrong” owner of your debt you are still on the hook for your debt. Many people have lost their homes due to confusion as to the actual owner of their debt.

[a fool in paradise]

No backups?

How queer.

[TTFlyer]

However, the taxpayers will eventually “own” this debt and no “judge” will find a way to get them off the hook.

Work harder, chumps.