by: Action News Jax Updated:
Missing paperwork could mean billion dollars in private loan student debt forgiveness, which could impact local Jacksonville college students and graduates.
It’s $5 billion in certain private loans that are in default, not federal loans, but students will have to vigilant to have that debt wiped away if they have the right private loan.
Loans and debt are two words that students and graduates hate hearing.
“I think it’s just completely stressful," said one student.
The headline - "private student loan debt could be wiped away” - broke nationwide Wednesday catching the eye of students across the country.
The New York Times reports that National Collegiate Student Loans, a major owner of private loan debts, is having a hard time proving in court who owns the loan they’re trying to collect.
“People who are avoiding their student loans services may not even know they are being sued,” said University of North Florida Financial Aid Director Roderick Andrews, but that in this case being sued could be a good thing.
Andrews said this is an opportunity to get back on track or learn you debt collector can’t prove you owe money.
"One of the worst things you can do with any student loan, federal or private is to hide, Andrews said.
Andrews also said if you are being sued over your loans and you don’t show up in court then you’re facing bigger problems.
“If you don’t show up then there is a summary judgment against them which makes it where no matter the cost of the loan they are on the hook for it," Andrew said.
© 2017 Cox Media Group.
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