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The majority of youngsters can’t start training for prestigious careers without student loans. However, the fees universities have been asking for in the past years attained astronomical figures. Therefore, there are many people who are struggling for years with their education taxes. However, a batch of students might be exempt from their loan debt completely. The motive is not a sign of benevolence coming from institutions yet human error.
The National Collegiate Can’t Prove in Court Its Ownership over Loan Debt Due to Missing Documents
The National Collegiate Student Loan Trusts holds in its control around 800,000 private loans which make it one of the largest such organizations in the United States. However, the job of such a company includes opening numerous lawsuits against borrowers who didn’t comply with the conditions of their loans. This year only, the institute filed at least 800 suits as it intends to receive repayments as soon as possible.
Usually, the winning side of such type of cases is the National Collegiate. That’s because many defendants prefer to settle or don’t even show up in court. However, as of recently, the balance is changing in favor of borrowers.
Many documents that are crucial for such cases are missing. The lack of such official papers makes it almost impossible for the organization to prove that it is the owner of the defaulted loans.
A monthly Audit Discovered that None of the 400 Portfolios Contained All Papers
Most of the missing papers concern cases that are at least ten-year-old. During this time, many folders reached different locations and private companies. There were several banks that issued them. Afterward, a financing firm took over many bundles of student loans.
In the end, the documents went through a securitization process that implies being sold to third-parties. During all this time, the federal government issued no guarantee for them.
One of National Collegiate’s financiers, Vantage Capital Group, ordered an audit on a monthly basis to go through borrowers’ bills. However, the findings revealed that not one loan debt out of a total of 400 contained all the necessary documents to prove the ownership. As a consequence, Vantage can be liable for fraud if it continues to demand repayments without the necessary paperwork.
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