Many Louisiana parents are currently helping their children navigate the college loan application process. Years from now, some could wind up needing debt relief if they are not able to satisfy their loans. It’s not always a student’s fault when serious debt arises, however.
For instance, consumers in another state who secured college loans were then illegally sued by a company who claimed to own the loans. In fact, more than 2,000 customers were negatively affected by the situation. Coming to the students’ rescues, the Consumer Financial Protection Bureau took action against National Collegiate Student Loan Trusts. The outcome was that the trust company must pay more than $3 million in restitution to the customers who suffered economic losses because of the invalid lawsuits filed against them.
Various factors were cited in the decision, including expired statutes of limitation on some of the loans and faulty paperwork on others. The trust company has also been mandated to conduct an audit of its entire portfolio, which is said to include at least 800,000 more loans. If all documentation is not in order, collections on whatever loans are affected must be immediately ceased.
It’s not uncommon for Louisiana college students to be in need of debt relief at some point in their adult lives. It is hopefully more rare, however, that such need would arise due to illegal lawsuits being filed against them regarding their college loans. Anyone with questions or concerns about such issues can request a meeting with an experienced debt relief attorney for guidance.