Poof! Missing Documents To Erase Student Loan Debts

A foul-up over some lost paperwork has literally wiped away the student loan debt for a myriad of borrowers who collectively owed billions of dollars.

According to the New York Times, around $5 billion worth of private student loan debt has been eliminated due to the fact that creditors have lost a lot of critical documents, which validated their cases against borrowers. Practically all of the borrowers were people who had fallen upon hard times and were unable to keep up their monthly payments.

The New York Times also reported that the creditors at these private education funding companies were fighting borrowers in court to force them to pay. Dozens of lawsuits have already been dismissed because courts have seen many errors in these collection cases, including inadequate ownership records and mass-produced documents.

The entire $108 billion-dollar private student loan debt crisis has all of the hallmarks of the 1990s to early 2000s sub-prime mortgage disaster. During this decade-long economic quagmire, a vast number of collection cases were tossed out by judges who heard arguments from creditors with fake documentation and other forms of malfeasance.

Read more on this report here at TheBlackHomeSchool.com.

 

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