Have you been sued by National Collegiate Student Loan Trust (NCSLT) for defaulting on your private student loans? If so, then you might be confused about how they now own your debt and what you can do. You can also view our video talking about what to do if sued by the National Collegiate Student Loan Trust.
What is National Collegiate Student Loan Trust?
Who is National Collegiate Student Loan Trust?” is often the first question I receive. When you take out a private student loan, the bank that you take the loan out from (Bank One, Discover, Chase Bank) funds the loan. Within a short period of time, your loan is then put into a trust pool. Those trust pools are sold to National Collegiate Student Loan Trust prior to payment becoming due. These loans are serviced during repayment by American Education Services (AES) unless your payments go into default, at which time they are transferred to Transworld Systems, Inc. (TSI) for servicing and collections. At this point, National Collegiate Student Loan Trust is basically a debt collector. And they will come after you for payment on the student loan debt with their vast resource of attorneys.
Is National Collegiate Student Loan Trust a Debt Collector?
According to the Fair Debt Collection Practices Act (FDPA), a debt collector is a person or company who collects debts from others. Although NCSLT denies it is a debt collector, it actually is according to the FDPA. The fact that NCSLT buys delinquent debts and then goes after the borrowers for repayment, qualifies them a “debt collector”.
So National Collegiate Student Loan Trust can sue me even though I didn’t obtain my loan through them?
Yes. If NCSLT bought your defaulted debt from the bank or creditor who you originally obtained the loan from, then they now own your debt and have the legal right to collect it. If you do not pay the debt, they can file a lawsuit against you to collect the debt.
What happens if I ignore the lawsuit that National Collegiate Student Loan Trust has filed against me?
NCSLT will use it’s vast resources to go after you for the debt by garnishing your wages, filing a lien against your property or real estate, or seize the funds in your bank account with a bank levy.
How can I fight back against National Collegiate Student Loan Trust?
You do have options if you are sued by NCSLT. I would first highly recommend hiring an attorney who focuses exclusively on debt relief. NCSLT has the resources at it’s fingertips to facilitate their lawsuits against thousands of borrowers. You should have someone with experience in this complicated process on your side to be your advocate.
Validating the Lawsuit
Your debt relief attorney will first make sure NCSLT has filed a valid lawsuit against you by making NCSLT prove that you, the borrower, in fact took out the loan; that NCSLT actually owns the loan and the right to collect; and that the amount of money that NCSLT claims that you owe is in fact, the correct amount due. If NCSLT cannot prove these facts, then your attorney could possibly have the lawsuit dismissed.
Settling Your Debt
If the lawsuit is valid, then your debt relief attorney can pursue a negotiation with NCSLT for a debt settlement. A debt settlement is when the parties involved reach an agreement that the borrower will pay less than the original amount of the debt. Depending on the negotiation, the debt is usually paid back over an extended period of time with a payment plan. Most creditors would rather be paid a reduced amount in a debt settlement than have you declare bankruptcy and therefore receive nothing.
How Do I Get Started?
If you are one of the thousands of student loan borrowers being sued by NCSLT or receiving collection calls, then contact me for a free debt consultation. I have been very successful in fighting back against National Collegiate Student Loan Trust.
Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or visit gamezlawfirm.com.
Watch Our Video Of What To Do If Sued By National Collegiate Student Loan Trust: