Student Loan Assistance Trumps 401ks for Many Employees

Chelsea West
July 19, 2017

One of the biggest holders of private student loans appears to have flunked Bookkeeping 101-and that could be very good news for a lot of borrowers.

The National Collegiate Student Loan Trusts, one of the largest owners of private student loans in the USA, has sought to collect from borrowers only to have cases dismissed due to lack of proper documentation, the New York Times reports.

National Collegiate is composed of 15 different trusts, collectively holding 800,000 private student loans.

Judges have recently thrown out lawsuits brought by the trusts in New Hampshire, Ohio and Texas.

More news: OJ Simpson could be paroled as soon as Thursday

The entire $5 billion of loans that are in default right now stand a chance at being basically wiped away.

The report claims that creditors have hit a snag when it comes to collecting the affected debts in court, as a result of insufficient ownership records and other missing documentation. The loans were originally sold by banks and then purchased by National Collegiate, though ownership records were lost in the process.

"Unless the tax laws change, not all employers can contribute to paying down student debt", said Balaji "Raj" Rajan, CEO of IonTuition, "But this study proves that employers have a key role to play across multiple generations of employees - from parents planning college for newborns to older employees paying for their own or their children's loans".

When borrowers don't go to court, National Collegiate nearly always automatically wins the case, but when they do show up, most of the time judges throw the suits out because National Collegiate was not able to produce the paperwork proving it owned the debt in question. If it's a loan we're owed fairly, we want to collect.

Other reports by TheSundaySentinel

Discuss This Article