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National Collegiate Trust Lawsuits in Ohio
Are You the Target of a Student Loan Lawsuit?
Don’t be intimidated by student loan trusts trying to take advantage. LHA can defend and help you find relief.
Call LHA: 888-726-3181
What Is the National Collegiate Trust?
National Collegiate Student Loan Trust (NCSLT), also called National Collegiate Trust, is an entity that holds private student loans guaranteed by The Educational Resources Institute, Inc. (TERI), a nonprofit organization that filed for bankruptcy in 2008.
NCSLT is a group of trusts that purchased bundled student loans as investments. They do not hold federal student loans – only private student loans.
Since National Collegiate Student Loan Trust is more than one trust, each trust is identified by a number code, such as “2007-3.” Together, all of the trusts currently hold private student loan debt totaling more than $12 billion, according to the New York Times.
NCSLT is associated with the following trusts and loan originators:
- National Collegiate Student Loan Trust 2004-1
- National Collegiate Student Loan Trust 2004-2
- National Collegiate Student Loan Trust 2005-1
- National Collegiate Student Loan Trust 2005-2
- National Collegiate Student Loan Trust 2005-3
- National Collegiate Student Loan Trust 2006-1
- National Collegiate Student Loan Trust 2006-2
- National Collegiate Student Loan Trust 2006-3
- National Collegiate Student Loan Trust 2007-1
- National Collegiate Student Loan Trust 2007-2
- National Collegiate Student Loan Trust 2007-3
- J.P. Morgan Chase, N.A.
- National Collegiate Funding, LLC
- Bank One, N.A.
- First Marblehead Data Services
- The Education Resource Institute, Inc. (TERI)
- NCO Financial
NCSLT has also purchased delinquent student loan debt from other companies, including banks and original lenders who issued private student loans. They often purchase this debt for less than what’s owed and attempt to collect the original amount due, making a profit.
Is NCSLT Different from Other Student Lenders?
NCSLT is different because they are not an original lender or student loan manager. They are essentially debt buyers who purchased student loan accounts to collect on those debts.
What If National Collegiate Trust Sues You
If a National Collegiate Student Loan Trust lawsuit is brought against you, you should immediately contact a student loan defense lawyer. You must answer the Complaint that they file correctly. Otherwise, you could default and get an automatic judgment against you. That means you will owe Collegiate Student Loan Trusts more money, and it will have the right to go after you or your cosigner’s income and assets.
If the National Collegiate Student Loan Trust sues you:
- Contact an Ohio student loan lawyer immediately
- Verify that you took out the loans originally
- Review whether your loan was public or private
- Check if you are behind on loan payments
- Verify the amount allegedly overdue is correct
There are numerous ways to defend yourself if this lawsuit is brought against you. Do not ignore a notice or summons if you receive it from the court. It’s also not a good idea to handle the case by yourself. NCSLT has professionals who will do anything possible, even lie, to get money from you.
Not Just Any Debt Attorney
LHA founding partner Jeremiah E. Heck knows the unscrupulous tactics used by the National Collegiate Trust. He is here to help protect your rights.
Why is NCSLT Suing Me?
NCSLT has filed more than 4,000 lawsuits against borrowers around the country. They do this to make money.
For National Collegiate Student Loan Trust to make money, they sell bonds to investors. Those investors receive distributions based on the amount of money obtained from borrowers. The less money paid back by borrowers; the fewer investors earn. This provides the trusts with a great incentive to encourage or force borrowers to pay.
Potential Defenses to a Student Loan Collection Lawsuit
If a student loan company sues you with an enforcement action, you still have options.
Do they Have Standing?
A person or business must have “standing” to file a lawsuit. Standing is the connection between the party who brought the lawsuit (the plaintiff) and the alleged harm. In this case, there must be a sufficient connection between the National Collegiate Student Loan Trust and your default on the loan. Whether this connection exists is generally based on ownership of the loan.
Do They Own Your Loan?
If the trust can prove it owns your private loan, it has a right to file the lawsuit. They may prove this with a copy of your signed promissory note, an assignment from the lender to the trust, and/or a proper accounting of your account. However, in some situations, the National Collegiate Student Loan Trust does not have a proper paper trail. Without proof of ownership, many judges have dismissed lawsuits against borrowers.
Incorrect Facts & Past Deadlines
You may also demonstrate that the trust does not have the correct facts regarding your loan and what is owed. Many student loan borrowers have faced lawsuits in which the information is inaccurate.
Additionally, the trusts have been known to bring lawsuits after the statute of limitations has expired. Lenders or parties who purchase loans have a certain period to collect on defaulted loans. If the trust is beyond the statute of limitations, you may be able to have the lawsuit dismissed.
NCSLT & Illegal Collection Activities
In 2017, National Collegiate Student Loan Trusts was held accountable for illegal collection activities. NCSLT agreed to a settlement with the Consumer Financial Protection Bureau, where it agreed to pay nearly $19 million in penalties and refunds to borrowers. They may even have to forgive certain private student loans. A debt collector that NCSLT hired, Transworld Systems, was also ordered to pay $2.5 million.
The National Collegiate Student Loan Trusts settlement results from lawsuits the company brought in an attempt to collect student loans that they couldn’t prove were owed. They filed false and misleading affidavits throughout the United States.
Additionally, many of the student loan lawsuits by NCSLT were legally uncollectable because they were either past the statute of limitations (date of which they could lawfully sue) or lacked documentation.
As a result of the settlement, potentially hundreds of thousands of private student loans owned by NCSLT will be written off and forgiven. If you have been sued by National Collegiate Student Loan Trust or believe they are trying to collect on an invalid debt, contact LHA immediately.
Why Use a Lawyer
When dealing with a large company like National Collegiate Student Loan Trust, you will be facing powerful companies who do not always play fair. You deserve to have an attorney represent your best interests.
Protect Your Rights
Even if you owe money on a student loan, you have rights. LHA will ensure your rights are protected throughout the legal process.
Representation in Court
If NCSLT sues you, you will likely be required to attend multiple court hearings and maybe even a trial. If you work with an attorney, they can show up on your behalf.
Achieve the Best Outcome Possible
If you defaulted on a student loan, your lawyer can determine if the student loan company has the proper information and negotiate the best outcome possible.