If you default on your student loan:

However, if a default student loan has been securitized the loan is uncollectable.

See Also:

Just In: Landmark Supreme Court ruling leaves no doubt that rescission is effected when the borrower notifies the creditor of his intention to rescind.

In order to challenge the rescission the bank must file a lawsuit within 20 days asking for declaratory relief that the rescission is not effective. If their grounds are that TILA rescission is not available because there was no contract, then they are essentially arguing that the borrower can’t rescind because there was no contract. Either way they lose the deal, the mortgage, the note; everything.




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