New York Attorney General Opens Inquiry Into Student Loan Collection
The Times’s news story is “deeply concerning” he said,
but it is “unfortunately consistent with the increasingly cynical and freewheeling culture we’ve seen take hold across the student loan industry.”
He added, “We will conduct a full investigation and will hold the perpetrators of any fraud against our students accountable.”
A search of state court records indicates that National Collegiate’s trusts have filed at least 600 lawsuits in New York in recent years.
By STACY COWLEYJULY 19, 2017
The New York attorney general, Eric T. Schneiderman, has opened an investigation into the collection practices of the National Collegiate
Student Loan Trusts, one of the nation’s largest owners of private student loan debt, according to Mr. Schneiderman’s office.
The attorney general’s office sent subpoenas on Wednesday asking for information on every
collection lawsuit filed by National Collegiate’s trusts against New York residents.
The 800,000 private student loans that National Collegiate owns, totaling more than $12 billion, were originated
a decade or more ago by other lenders, then packaged into securities and sold to investors.
National Collegiate’s trusts have aggressively pursued in court borrowers who fall behind on their student loan payments.
