Some Defenses to Private Student Loan Collections

Student Loan Debt Rises to $1.5 TRILLION in May, 2018 Life for the next 20++ years – between a rock and a hard place. There are two types of student loans – federal and private.  Federal loans have some protections for the lenders that private student loans do not.  Every month lawsuits are filed by the thousands, many that are invalid, but if the borrower does not respond the court has no option but to award a judgment for the lender. Below are five defenses may be successful in halting student loan collection cases. The creditor cannot prove that it owns the debt. Many private student loans are transferred by their original lender to investors through a process called securitization, in which thousands of loans are pooled together and sold as a package.  Lender needs to prove that it owns the loan – Lovett v. National Collegiate Student Loan Trust 2004-1 The creditor’s business records are not admissible. There are rules…

Read more detail on Recent Bankruptcy posts –

This entry was posted in Bankruptcy Law and tagged , , , , , . Bookmark the permalink.

Leave a Reply