$5 Billion in Student Loans Could be Forgotten Due to Missing Paperwork
Former students with loans could be given an amazing gift - a forgiven school loan.
I took out a loan for $4,000 in 1985 for one year of school. I had it paid off by 1991. At the time I felt cursed. Turns out I was on lucky college dropout. Now there could be a whole lot of lucky college graduates.
Fox Business Network's Tracee Carrasco is reporting on a story from the New York Times about a paperwork error that could mean $5 billion in loans could be wiped away.
It seems that private loans issued by the National Collegiate Student Loans Trust are missing critical paperwork. It effects 166,000 separate loans totaling $5 billion, with a "B".
The loans were originally granted to kids by banks, then bundled and sold to National Collegiate, and now it's unclear who owns the loans. If National Collegiate can find the paperwork proving they own the loans, and show it in court, a judge will be forced to toss them out.
Judges in New York, New Jersey, Texas, and Ohio have begun clearing debts.