Thread regarding Navient layoffs

Read it and weep

Private loans dischargeable in bankruptcy.

https://www.insidehighered.com/quicktakes/2021/07/16/appeals-court-rules-private-loans-dischargeable-bankruptcy

https://www.ca2.uscourts.gov/decisions/isysquery/047cd335-240a-4fb7-9128-799d8f8667e6/4/doc/20-1981_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/047cd335-240a-4fb7-9128-799d8f8667e6/4/hilite/

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Post ID: @OP+1bRx8TVm

4 replies (most recent on top)

The Next "Big Short": COVID-19, Student Loan Discharge in
Bankruptcy, and the SLABS Market

https://scholar.smu.edu/cgi/viewcontent.cgi?article=4867&context=smulr

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Post ID: @2wga+1bRx8TVm

"Another significant issue with some SLABS is that their student loan assets are less immune to dischargeability in bankruptcy than many think."

https://www.bu.edu/rbfl/files/2021/02/Tanafon.pdf

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Post ID: @1sdj+1bRx8TVm

"This reveals another threat against SLABS: litigation leading to the reduction or cancellation of the debt underlying the security. Judging by reports, shoddy paperwork and questionable decisions were just as prevalent in the student loan industry as in the mortgage industry before the subprime crisis. Depending on the outcome of the various cases surrounding the CFPB/National Collegiate Student Loan Trusts struggle, the viability of many of these subpar loans might be called sharply into question. As shown by the settlement, the resolution of these issues could lead to entire SLABS either being wiped out or devalued to the point of worthlessness. A major legal
win against the collection agencies and investors could— depending on the stability of the SLABS market and how far the pressure to create SLABS has caused contemporary SLABS standards to slip—touch off a panic as investors try to unload their suddenly-questionable SLABS assets as quickly as possible."

https://www.bu.edu/rbfl/files/2021/02/Tanafon.pdf

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Post ID: @1ann+1bRx8TVm

"Navient offers no compelling rejoinder to this argument, but instead
proffers two structural arguments of its own. Neither is persuasive. "

https://www.ca2.uscourts.gov/decisions/isysquery/047cd335-240a-4fb7-9128-799d8f8667e6/4/doc/20-1981_opn.pdf#xml=https://www.ca2.uscourts.gov/decisions/isysquery/047cd335-240a-4fb7-9128-799d8f8667e6/4/hilite/

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Post ID: @ibl+1bRx8TVm

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