Who 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 (FDCPA), a debt collector is a person or entity who collects debts from others. Although NCT may claim it is not a debt collector, it actually is according to the FDCPA. The fact that NCT buys delinquent debts and then goes after the borrowers for repayment, qualifies them a “debt collector”.