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Confusion over student debt comes as people are already rethinking college

Business Insider·Dan DeFrancesco·26 days ago
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Hannah Latham, Nic Antaya for BI; Alyssa Powell/BI This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here . Default, disappear, and then due again. That's the confusing journey some private student-loan borrowers are facing. Dozens of borrowers, lawyers, and industry experts spoke to BI's Ayelet Sheffey about the uncertainty and lack of transparency that can occur when private student loans move toward default . It's the first story in a new BI series on the spiral that student debt can send borrowers into. Multiple borrowers told Ayelet they were notified that their loans had been paid off and that their accounts showed a balance of $0. Only later would they learn that the loans had actually been transferred to a third party and that they were being sued to collect the full balance. A debt-relief lawyer said this isn't necessarily a case of wrongdoing on anyone's part.…

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