Last Thursday, August 27, Vice Chancellor Joseph R. Slights III of the Court of Chancery for the State of Delaware ruled that a private equity founder has little control and no benefit in control of over $15 billion in student loan securitizations in the consolidated litigation related to the case of CFPB v. National Collegiate Student Loan Master Trusts. In the ruling, in which SFA’s recent amicus brief was referenced, Judge Slights clarified the roles and duties of many of the parties involved including trustees and loan providers but also acknowledged that the decision would not be able to resolve everyone’s questions. “While I have addressed the discreet questions of law that have been submitted for decision, this opinion will not resolve all of the parties’ disputes… I trust this opinion is a valuable first step toward bringing clarity to the parties as they sort through broader aspects of their disagreements regarding the trusts’ governance and operations.” SFA’s brief highlighted how an incorrect ruling on this case could have a “harmful and destabilizing impact on the securitization industry.”

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