Private loan transfers spark confusion and lawsuits
BI’s new series on the student-debt spiral shows how private loans that move between lenders and servicers can trigger mistaken balances, missing notices, and lawsuits. Profiles like Ashley Carlson and Hannah Bates illustrate how transfers and opaque communications leave borrowers unsure about who owns their debt, when they default, and how to resolve it, even as policy shifts threaten to reshape repayment. The piece highlights broader issues with private loans, consumer protections, and the rising legal costs for borrowers without attorney support.