A bankruptcy Adversary Proceeding was filed in December of 2018 and one of the parties named in the action was American Educational Services.
The consumer said they had $132,652 in private student loan debt that American Education Services was servicing. The underlying creditor was said to be Coronado Student Loan Trust.
On March 19, 2019, the private student loan debt was discharged by default when the creditor failed to defend itself. – Source
AES even asked for additional time to respond to the suit and just didn’t.
What makes this case interesting is if Coronado Student Loan Trust may be lacking the underlying documentation to validate their debt like National Collegiate Student Loan Trust struggles with.
If so, maybe Coronado Student Loan Trust loans should get a second look at by bankruptcy attorneys.
On the original filing, the debt was listed as FCDP PSL TRUST. – Source
It will be interesting to see if Coronado Student Loan Trust wants to wind up trying to revive this entire issue even after AES hired a law firm to represent them and did not want to fight the matter.
The Coronado Student Loan Trust is a bit of a mystery. It seems that Wilmington Savings Fund Society has been involved with other student loan trusts. For example, the Laurel Road Prime Student Loan Trust 2018-B was owned by Wilmington Savings Fund Society with the following underwriters: Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, and Fenner & Smith Inc. – Source
I would not be surprised to find a similar interrelated relationship for the Coronado Student Loan Trust once this mysterious entity can be brought to light.