There are times when the wilder froth of this free market capitalism stuff turns out to be its own worst enemy--this very fun case about the missing student loan docs being a lovely example, as parts of the mortgage foolishness were a decade ago. The loans held by National Collegiate were made by banks to student borrowers more than a decade ago, according to the Times. There is absolutely nothing at all wrong with private investors--banks or anyone else--lending money to students to go to college. There is a problem with the system if the paperwork isn't done properly:The National Collegiate Student Loan Trusts are a collection of trusts that together comprise one of the US’s biggest owners of private student loans, possessing around 800,000 different loans totaling $12 billion. Firstly we don't want people to be able to randomly demand money from others, they must be able to prove it.

Source: Forbes July 19, 2017 17:24 UTC