Paperwork has consequences. In this case billions in consequences.
(From The Daily Caller)
Missing paperwork may cause student borrowers to be forgiven more than $5 billion in debt, according to a Tuesday investigation of court records.
The National Collegiate Student Loan Trusts (NCSLT), an umbrella group for 15 trusts for student loans, has encountered difficulties proving that it owns $5 billion in student debt, according to The New York Times.
“As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises,” the NCSLT said in a 2016 legal document. The NCSLT holds 800,000 student loans, amounting to $12 billion.