How, exactly, does the paperwork connected to roughly $5 billion worth of loans just disappear?
New York attorney general Eric T. Schneiderman is one of the people who'd like to find out. In response to a New York Times story published on Monday, which detailed a series of lawsuits brought by one of the largest owners of private student loan debt in the U.S., Schneiderman's office has launched an investigation into "a broad range of potential abuses and violations of New York law."
The company in question, National Collegiate Student Loan Trusts, may have brought lawsuits against borrowers in cases where the company is unable to prove ownership of the loans. The loans currently being disputed total more than $5 billion.
National Collegiate has a reputation for "aggressively suing students," according to The Student Loan Law Group, a firm that specializes in litigation related to student loans. In 2014, borrowers in California brought a class action lawsuit against the company alleging deceptive practices (the case was later settled.)