Billions In Private Student Loan Debt Could Disappear, Thanks To Botched Paperwork

As lenders aggressively pursue borrowers who have defaulted on student loans, missing paperwork and merky chains of ownership benefit debtors when they land in court.

By Taylor Jackson Buchanan & Jill AmentJuly 19, 2017 1:38 pm| ,

If you’ve ever wished your student loans would simply disappear, you’re certainly not alone. Luckily for some borrowers, the prospect of wiping away some of the nation’s approximately $5 billion worth of private student-loan debt is a real possibility. Some debtors caught up in court cases over failure to meet their repayment obligations are asking the banks a smart question: “Can you prove I owe you the money?”

Joanna Darcus, attorney and fellow with the National Consumer Law Center, explains why aggressive tactics like taking debtors to court can, in some cases, benefit those who get an opportunity to challenge their lenders.

 

Written by Taylor Jackson Buchanan.