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The varied resolutions of these debates over collateral and contracts thus have important economic implications for borrowers of all kinds, including businesses, governments and families, and for the overall economy.
Second, for borrowers of private student loans, interest rates are currently near their all time lows.
"Delinquency is at crisis levels for borrowers, particularly for borrowers of color, borrowers who have gone to a for-profit and borrowers who didn't ultimately obtain a degree," she said.
"It's like they are changing their mind midway through the proceeding," said John Rao, an attorney at the National Consumer Law Center, which advocates for borrowers, of the action taken by ResCap's lawyers.
Unlike other types of loans and other types of debt, there is no relief for borrowers of student loans who have fallen on hard times.
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That makes high-fee fraud all the more deplorable, he added, calling fraudulent services "the knockout punch" for borrowers on the brink of foreclosure.
In online lending markets, borrowing list information is an important basis for borrowers to measure lenders' degree of believability.
There's no clear way in these contracts for borrowers to renegotiate the terms of it or to refinance.
"Mainstream mortgages are for borrowers' use of the property," explains David Hollingworth, associate director of London & Country Mortgages.
And lenders have tightened requirements for borrowers, fewer of whom can thus qualify for mortgages.
The loan market, although it receives little publicity, is a critical source of financing for corporate borrowers of all stripes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com