It seems like Christmas has come early this year. People from across the country are rejoicing after finding out that their student loan debt may be erased. Due to improper paperwork, a total of $5 billion in student loans is said to have simply disappeared.
The one footing the bill is the National Collegiate Student Loan Trust. Made up of 15 collective trusts, it’s one of the largest loan institutions in America. They are notorious for chasing their clients who are unable to pay to the ends of the Earth for their money. Clients are often met with lawsuits and lose against such a large corporation. After losing the lawsuit, National Collegiate is able to seize any and all assets in order to get back the loan money.
However, the tables have turned. It is now National Collegiate on the losing end because of their improper contracts and paperwork that provide proof of loan and loan amount. Not only were some documents missing, the paperwork had loans from schools the clients never attended, incomplete signing of signatures, and just wrong basic information.
National Collegiate’s ill paperwork practices have even caught the eye of Eric T. Schneiderman, the New York State Attorney General. He has sent subpoenas to every trust in National Collegiate asking to see every lawsuit they have ever filed against New York residents. Schneiderman hopes that with these subpoenas he will be able to detect fraud and protect New Yorkers from being chased to the ends of the Earth. In speaking with CNBC, Schneiderman said “I won’t allow a generation of New Yorkers to get victimized by the very system that was created to help them get ahead.”
Now, the public waits in anticipation to see whose debt has been invalidated and wiped away. So far, the only people affected have been those with large amounts of loan debt. Although they didn’t understand the fine print and legal terms, they signed in order to put themselves through college. With this new development, several people have received their education and no longer have to deal with the overwhelming weight of debt on their shoulders. They can start their lives wholeheartedly and can make steps towards home ownership, getting a car, or any other hallmark of adulthood.
This happy accident allows people to start fresh at life at the expense of a big corporation. For those whose debt has been erased, National Collegiate’s loss is definitely their gain.
– Amalachi Okpalanma