Brian Manookian, a lawyer based in Nashville, Tennessee, recently shared his story of triumph over student loan debt by taking his lender to court. In a viral tweet, he revealed that he filed a lawsuit against his original lenders, National Collegiate Student Loan Trust 2004-2 and National Collegiate Student Loan Trust 2006-2, after they transferred his accounts to a shell company without his knowledge. Manookian’s tweet gained widespread attention, attracting millions of views. His revelation comes in the wake of the US Supreme Court’s ruling against President Biden’s plan to cancel a significant portion of American student loan debt. In subsequent tweets, Manookian outlined the basic steps others could follow to potentially have their student debt eliminated through legal means. This article delves into the details of Manookian’s journey and the implications of his approach.
Manookian’s Student Loan Debt Story
Having attended Vanderbilt University Law School, Manookian accumulated significant student loan debt to finance his education. Over the course of many years, he diligently made payments towards his loans. However, his perspective changed in 2016 when he sought to purchase a building for his law firm and was informed that he needed to pay off his student loans to qualify for a mortgage.
While contacting his loan company to determine the final amount, Manookian discovered that his accounts had been transferred to shell companies based in Delaware. Upon further investigation, he found that these companies had filed numerous lawsuits against individuals in Tennessee for loan defaults. Determined to challenge the ownership of his own loan, Manookian took legal action against the shell companies in his home state.
Legal Victory and Strategy
According to News Break, Manookian’s lawsuit resulted in a default judgment in his favor when the companies failed to respond to his claims. In subsequent tweets, he explained that many loan servicers and lenders lack proper documentation to establish ownership, which can be challenged in court. Manookian encouraged others to explore similar legal avenues, emphasizing that it was about holding these companies accountable to the contracts they enforce upon borrowers.
However, he cautioned that this approach may not be feasible for everyone, especially those with federal loans guaranteed by the government. Nonetheless, Manookian expressed his intention to create a website offering a step-by-step guide for individuals interested in pursuing legal action against their lenders.
Limitations and Implications
While Manookian’s success story offers hope to borrowers burdened by student loan debt, it is essential to acknowledge its limitations. Federal loans, which constitute a significant portion of student debt, may not be subject to the same legal strategies. It is crucial for borrowers to understand the terms and conditions of their loans and consult legal professionals before embarking on any legal action. Additionally, the significance of Manookian’s story lies in the broader conversation surrounding student loan debt and the need for comprehensive reform to alleviate the burden on borrowers.