National Collegiate Student Loan Trusts is one of the major holders of private student loan debt originated by banks in the United States.
The trusts have been involved in legal battles with federal authorities, investors, and other parties.
Despite the litigation, NCSLT continues to urge consumers to repay the faulty loans.
If you’ve ever been sued for a student loan by the National Collegiate Trust, chances are you’ve never heard of them and have no idea what they have to do with your loan.
This article discusses major features of the firm and walks you through the procedure.
If you have a private student loan from a specific organization or bank, National Collegiate Trust is very certainly engaged in this procedure.
How? Let us clarify the firm and its area of interest so that we can fully grasp the organization, its goals, and provide solutions for students impacted by national collegiate student loans.
Is National Collegiate Trust A Federally Guaranteed Loan?
National Collegiate Trust is the owner of private student debt, not federal student loans.
That means NCSLT loans are ineligible for income-driven repayment plans, Public Service Loan Forgiveness, or any of the other advantages available to borrowers via the Department of Education.
It also means that if you fall behind on your payments to National Collegiate Trust, your income will not be withheld or your tax refund will not be deducted.
Before performing any of those things, the firm must sue you and obtain a judgment.
National Collegiate Complaints
National Collegiate Trust found itself in significant legal difficulty a little more than two years ago for pursuing debtors for debts that were legally uncollectible.
In particular, the Consumer Financial Protection Bureau (CFPB) moved against National Collegiate Trust in 2017 after discovering that National Collegiate was suing student loan debtors for damages.
- Loans that National Collegiate could not demonstrate ownership of, or
- Loans where the statue of limitations (the period for collecting on a debt) has expired.
National Collegiate Trust was ordered to pay over $19 million in fines and agreed to put aside $3.5 million for refunds to 2,000 student loan borrowers as a result of its acts.
What Happens If I Fight The Lawsuit?
National Collegiate Student Loan Trust often expects debtors to do nothing when they sue for payment in order to get a default judgment and spend as little money on legal expenses as feasible.
In reality, a default judgment is obtained in nearly 90% of all collection proceedings, including private student loan collection claims.
If you engage an expert attorney, numerous results are possible that do not need you to pay the whole sum requested. The following scenarios are possible:
For financial reasons, the plaintiff may decide to drop the claim. As previously said, most people do not fight, therefore National Collegiate Student Loan Trust may find it too costly to collect the debt if a simple default judgment is not obtained.
The collegiate loan case may be dismissed if the defendant successfully argued a viable defense, such as:
- There is no legal right to collect debt.
- Identity Error
- Limitation of Liability
When the plaintiff learns you have an attorney, they may offer to settle the lawsuit for less than what they say you owe.
Your attorney can also negotiate the settlement to ensure that it is more acceptable to you.
For example, if National Collegiate Student Loan Trust alleges you owe them $50,000 and offers to settle for $30,000, it may seem appealing because it is $20,000 less than what they could obtain if you lost the lawsuit.
Assume your attorney approaches them and offers an instant lump amount in exchange for the $30,000 settlement offer.
In that instance, people may be tempted to agree in order to collect the money instantly rather than over a long period of time.
Last Thoughts
If you are having problems with national collegiate loans, “Student Loans Resolved” can answer all of your inquiries and explain how to defend yourself during the procedure.
They supply all of the relevant information, from your qualifying status for any student loan concerns through student loan settlement or payment decrease.
