Skip Nav
Op-Ed on Hillary Clinton and #MeToo
Opinion
Stop Making Women Answer For Abusive Men
Barack Obama Midterm Elections Voting Excuses Video For ATTN
Barack Obama
Barack Obama Reappears For a Voting PSA That's Actually a Delight to Watch
Saturday Night Live
Alec Baldwin Returned as Trump on SNL, and of COURSE There Was a Kanye West Spoof
When We All Vote Early Voting PSA
Michelle Obama
As Early Voting Begins, Let Michelle Obama Remind You Why Your Vote Matters
Ways Men Can Support the Women's Movement
opinion
The Philogynist Pledge — 10 Ways Men Can Support the Women's Movement

Student Loan Debt Cleared Over False Paperwork

If You Have Private Student Loans, This Error May Wipe Away Your Debt

A large-scale paperwork error may permanently clear the student loan debt for thousands upon thousands of college graduates. After taking students to court over late payments, the National Collegiate Student Loan Trusts is unable to prove its ownership over the loans in question. Judges are consequently having to dismiss these lawsuits, wiping away the defendants' debt.

The National Collegiate Student Loan Trusts is an umbrella group consisting of 15 trusts amounting to 800,000 private student loans valued at over $12 billion. According to The New York Times, the group does not have the necessary paperwork to prove ownership over the loans, since the loans actually originated in banks and were later sold to investors. It has been reported that the loans affected by this oversight amount to $5 billion.

The ongoing crisis — well, for the trust group, that is — proves a larger problem about private loans. While federal loans are funded and regulated by the government, private loans are subject to arbitrary and rapidly rising interest rates. Graduates with federal loans may select payment plans suited to their incomes. Private borrowers, on the other hand, face many issues.

ADVERTISEMENT

In an interview with The New York Times, Samantha Watson spoke about her experience. The 33-year-old mother of three said she had a difficult time understanding the fine print when she applied for a private loan to attend Lehman College. After falling behind on her payments, National Collegiate took her to court.

There, they filed documents falsely claiming she attended a school she never did. "I tried to be honest," Watson said. Adding, "I said, 'Some of these loans I took out, and I'll be responsible for them, but some I didn't take.'" Her debt — amounting to $31,000 — has since been wiped entirely.

From Our Partners
Barack Obama Midterm Elections Voting Excuses Video For ATTN
Op-Ed on Hillary Clinton and #MeToo
Taylor Swift's Post Causes Voter Registration Spike 2018
How Do I Vote Absentee?
How to Take Action After Brett Kavanaugh's Confirmation
Reactions to Trump's Presidential Alert October 3, 2018
Essay on Brett Kavanaugh Testimony on Alleged Sexual Assault
Personal Essay on Anita Hill, Blasey Ford, and Race
Pictures From the Senate Hearing on Brett Kavanaugh
C-SPAN Airs Sexual Assault Stories During Kavanaugh Hearing
Michelle Obama When We All Vote PSA September 2018
Can I Walk Into a Dispensary Without a Card in California?
From Our Partners
Latest News
All the Latest From Ryan Reynolds