You hear plenty of older relatives that talk about how they worked their way through college on their own. Working a shift or two at a burger joint to pay for 4+ years of college was doable in the 1950s. Times have dramatically changed, and the younger generations know this very well. A college education is not cheap anymore, and any college graduate has a large student loan debt to prove it. There are things parents can do to help their kids with college, though. Some tips to save some money include wearing secondhand clothes, cutting back on the junk food, not eating out often and not slacking off the entire Summer.
With this large lawsuit going on, it actually matters where you took out your student loan. The National Student Loan Trusts or NSLS is one of the largest student loan holders in the country. From this lawsuit, they are having $5 billion removed from their records. So many students that have student loans from them could owe nothing. A large section of their books doesn’t have proof of them owning the loans.
The legal issues for the National Student Loan Trusts started when they made calls for delinquent payments from borrowers. After attempting to collect thousands of payments, they couldn’t find any documentation that the debt was under their name. They were not the original lender and had bought the loans from other lenders. Many of these loans were originally private, which is common practice with loans. The independent lenders or banks give the money to the borrowers, and the smaller lenders will sell off the loans to large umbrella trusts such as the National Collegiate.
Daniel Gamez, a debt attorney, reminds people that this does not affect every loan within the National Collegiate’s possession. It only involves any loan with dubious claims from the National Student Loan Trusts with poor records. So they might forgive some loans because of a record-keeping error on the lender’s side. A person should not assume they do not have to pay their student loan, even if their loan is one of the dubious claims. At a later date, the National Collegiate could refile the grievances about the lawsuit.
A requirement to do many things in life is a good credit score. Never forget about a student loan. If they overturn the verdict, the debts would still be there and already in default. They can dismiss this case, offer a refiling or overturn the verdict. The people with loans that the National Collegiate provides proof of ownership for will still have the debt. While a $5 million lawsuit to remove student loans gives people hope, they should not just accept it as fact.
If a person defaults on a student loan and the loan is still good, the National Collegiate is within their rights to garnish the pay of the debtors. Defaulting on a loan hurts your credit score dramatically. Keep in mind that a person with a cleared loan from this lawsuit does not have an automatic clean slate. Many defaulted loans are being fought by the National Collegiate. They could drop some cases because of witness scheduling and refile later on. This will not be a quick process, no matter the outcome.