Recently, a group of creditors discovered that several student loans – to the tune of $5 billion – were erased because of missing paperwork and poor record keeping practices on the part of the lenders.
While the students can breathe a sigh of relief, the lenders, on the other hand, find themselves in deep trouble.So, what could be the cause of such a massive oversight?
Often, lenders buy and sell loans. That’s a common practice among lenders. In fact, a loan may change several hands throughout its life.