Will Your Private Student Loans Disappear?

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Loans

An investigation into recent shady student loan practices has made some students hopeful that perhaps their private loan debt will disappear. The headlines stated that up to $5 billion in overdue debts in default might be erased.

How true are these rumors, though?

Lawsuits appeared against borrowers and the National Collegiate Student Loan Trusts, and New York Attorney General Eric Schneiderman issues subpoenas after The New York Times questioned the validity of these cases.

Unfortunately, private student loans fall at about $1.3 trillion currently, so $5 billion is simply a drop in the bucket. It’s always best to approach these types of headlines with a healthy dose of skepticism.

Image via The College Investor.