Skip to content
Search AI Powered

Latest Stories

Court: Thousands Of Student Loans May Now Be Forgiven

Court: Thousands Of Student Loans May Now Be Forgiven

The loans in question total more than $5 billion.

Thousands of student loan recipients may not have to pay back their student loan debts––because lenders appear to have lost critical paperwork. Insufficient ownership records (among other missing documentation) have left creditors unable to collect the affected debts in court, according to a New York Times report.

The National Collegiate Student Loan Trusts, one of the nation’s largest owners of private student loans, has struggled to produce ownership records of its loans, which were originally bundled and sold by banks to investorsthrough a process known as securitization. None of these private loans were guaranteed by the federal government. In a recent legal filing, National Collegiate’s lawyers caution, “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.”


National Collegiate is an umbrella name for 15 trusts that hold 800,000 private student loans totaling $12 billion. Of that $12 billion, roughly $5 billion is currently in default, and the missing paperwork has resulted in judges across the country (including in New HampshireOhio, and Texas) dismissing dozens of the trusts’ lawsuits against students. This means thousands of people might find their debts essentially wiped away.

Samantha Watson, a mother of three who graduated from Lehman College in the Bronx in 2013 with a degree in psychology, said her "mom started to cry” after a judge's ruling relieved her of $31,000 in debt. Watson recalls she fell behind on her student loan payments after her daughter fell ill and she was forced to quit her job as an executive assistant. She eventually found work as a nurse's aide, though her meager paycheck left her struggling to pay her family's expenses. According to her lawyer, Kevin Thomas of the New York Legal Assistance Group, National Collegiate presented documents saying Watson enrolled in a school which she never attended.

“I tried to be honest,” Watson said of her court appearance. “I said, ‘Some of these loans I took out, and I’ll be responsible for them, but some I didn’t take.’”

Judge Eddie McShan of New York City’s Civil Court in the Bronx agreed with Thomas that National Collegiate’s paperwork “failed to establish the chain of title” on Watson's loans. Judge McShan dismissed four lawsuits against Watson.

National Collegiate's troubles have continued, as one of the financiers behind its trusts stated he agreed with some of the criticism leveled the group's way.

“We don’t like what’s going on,” said Donald Uderitz, the founder of Vantage Capital Group, a private equity firm which is the beneficial owner of National Collegiate’s trusts, keeping whatever money is leftover after the trusts’ noteholders are paid off. “We don’t want National Collegiate to be the poster boy of bad practices in student loan collections, but we have no ability to affect it except through this litigation."

Uderitz says he disagreed with National Collegiate’s collection lawsuits and wanted them to stop. He admits that an internal struggle between Vantage Capital and others involved in operating the trusts has hindered him from ordering a complete halt.

More from News

shocked woman
Olivia Hutcherson on Unsplash

People Break Down The Most Brutal Insults They've Ever Heard

Let's be honest, it doesn't take any talent to insult someone.

After all, by the time children learn to speak in complete sentences, they're hurling sophisticated comebacks like:

Keep ReadingShow less
Dubai Princess Publicly Demands 'Divorce' From Cheating Royal Husband In Blunt Instagram Post
@hhshmahra/Instagram

Dubai Princess Publicly Demands 'Divorce' From Cheating Royal Husband In Blunt Instagram Post

In an unexpected move, Her Highness Sheikha Mahra bint Mohammed bin Rashid Al Maktoum, the Dubai princess, addressed her husband's infidelity on Instagram, declaring their divorce.

Sheikha Mahra, who is daughter of the UAE Vice President and Prime Minister, His Highness Sheikh Mohammed bin Rashid Al Maktoum, wrote a scathing and short message to her husband.

Keep ReadingShow less
TikTok screenshot of Jodi Benson watching daughter sing; Ariel from the 1989 'The Little Mermaid'
@coolzjay/TikTok; Disney

'Little Mermaid' Star Jodi Benson Tears Up Watching Daughter Sing 'Part Of Your World' On Stage

A clip of the original voice of Ariel, Jodi Benson, watching her daughter Delaney play the lead role in a stage production of The Little Mermaid has gone viral, and Benson revealed she was moved to tears by the performance.

Posted to TikTok, the video has already garnered more than 4.2 million views in only a few days, and people on the platform said they got a bit emotional, as well.

Keep ReadingShow less
Kate Beckinsale
@houseofmuamua_

Kate Beckinsale's Custom Swimsuit Sends Blunt Message To Her Haters Online

British actor Kate Beckinsale has no time for trolls criticizing her looks.

Instead of addressing haters' unsolicited assessments of her online, the 50-year-old actor came for them with a fierce fashion statement that said it all.

Keep ReadingShow less
Kit Connor
Karwai Tang/WireImage/GettyImages

Kit Connor Is Rumored To Be Top Choice For Gay MCU Superhero—And 'Heartstopper' Fans Are So Into It

Fans of Heartstopper were absolutely chuffed and crossing their fingers after hearing rumors that British actor Kit Connor was being considered to play a known LGBTQ+ superhero in the Marvel Cinematic Universe.

The 20-year-old has been acting since he was just 8 in numerous TV and film projects, including roles in the 2018 films The Mercy, and The Guernsey Literary and Potato Peel Pie Society. He also portrayed a teenaged Elton John in 2019's Rocketman and voiced Pantalaimon in the HBO fantasy series His Dark Materials.

Keep ReadingShow less