Tuesday, July 18, 2017

As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away - The New York Times

A multi-$B workflow worst-practices case study

"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.

Some of the problems playing out now in the $108 billion private student loan market are reminiscent of those that arose from the subprime mortgage crisis a decade ago, when billions of dollars in subprime mortgage loans were ruled uncollectible by courts because of missing or fake documentation. And like those troubled mortgages, private student loans — which come with higher interest rates and fewer consumer protections than federal loans — are often targeted at the most vulnerable borrowers, like those attending for-profit schools."
As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away - The New York Times
Post a Comment