robo signingAs if students didn’t have enough problems trying to find student loan debt relief, many are now facing court actions. They are being hit with not only the principal amount they owe but large amounts of penalties and interest. Now the latest problem is students are being faced with what is being called the Robosigning 2.0 which is a mirrored effect of what took place in the housing market.

Loan Troubles

This is all centering around the proper paperwork. Student debts are being sold off to third parties who are setting up trusts based on these loans, and selling shares to investors in these trust companies that hold the student debts. The paperwork backing up the authentic figures of these loans is often missing and misleading.

Many students are now going to court to support their situation. Any student that is in this situation should seek out the assistance of student  loan  lawyer. They should not just succumb to paying the student loan debt if they feel it is inaccurate.

Some students have tried to rectify this new problem by turning to credit repair services which has proven to be detrimental because they didn’t contest the law suits that were laid against them regarding the collection of the student loan. Often what happens is because the amounts don’t seem that large students don’t show up to defend themselves when the law suit goes to court. This is a big mistake and any student facing a law suit should seek out immediate professional help.

Read more: http://www.bloomberg.com/news/articles/2015-06-04/the-student-debt-collection-mess

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