Promising News for Student Loan Borrowers
A recent lawsuit against private student loan borrowers has been dismissed. Here's what you need to know.
Judges recently dismissed dozens of lawsuits against private student loan borrowers because of shoddy record keeping by companies claiming to own the debt. That could be promising news for borrowers, particularly those with loans held by the National Collegiate Student Loan Trusts, one of the largest owners of private student loan debt and the organization at the center of recent court cases. But the chances that your loan will be wiped out are slim. So far, courts have looked only at cases in which National Collegiate sued borrowers. Until you learn otherwise, continue making payments.
If you're contacted by an unfamiliar lender, ask for a copy of the master promissory note. The company is not legally required to provide the information, but if it doesn't, you can file a complaint with the Consumer Financial Protection Bureau and your local attorney general’s office.
To avoid questions about who owns your loans, keep a copy of the signed promissory note for each loan as well as any communication you receive about the sale of your loans to another company. Borrowers with federal student loans can track them through the National Student Loan System at www.nslds.ed.gov.