Consumer Protection Lawyer
If National Collegiate Student Loan Trust has sued you or a loved one, you could speak with a consumer protection lawyer. Law Office of Simon Goldenberg has substantial experience defending borrowers who are sued. We'll help explain your legal options and how our firm can defend you against National Collegiate Student Loan Trust's claims. We will fight for you. To get started, reach out to Law Office of Simon Goldenberg for a free consultation by calling (888) 301-0584 or contacting us online.
As of 2021, 44.7 million individuals have student loan debt averaging $30,000 per borrower. According to Simply Insurance, of the $1.7 trillion of student loan debt, approximately $135 billion is in private student loan debt. The National Collegiate Student Loan Trust purchases private student loan debt and then collects payments. Therefore, if you have failed to make the student loan payments that National Collegiate Student Loan Trust purchased, you may be sued for the collection of your debt. If National Collegiate Student Loan Trust is suing you, you are likely wondering:
- What is the National Collegiate Student Loan Trust?
- What rights do you have against the National Collegiate Student Loan Trust?
- What will happen if you fight the lawsuit?
What Is The National Collegiate Student Loan Trust?
The National Collegiate Student Loan Trust is a company that owns several Delaware trusts that pool multiple private student loans together. These student loans were likely purchased from private lenders such as Bank of America, JPMorgan Chase, and Citizens Bank. The trusts then sell bonds backed by student loans. National Collegiate Student Loan Trust are not lenders, and as a result, you may be confused when you get a notice that you must pay or are in default concerning a National Collegiate Student Loan Trust.
What Rights Do You Have Against The National Collegiate Student Loan Trust?
As discussed above, National Collegiate Student Loan Trustis not a lender. Therefore, they must have bought your student loan debt from the lender that TERI guarantees. As a result, for National Collegiate Student Loan Trust to sue you on balance due, they must prove that they legally own the Promissory Note. In addition to proving that they legally own the Promissory Note, they must prove that the amount being claimed is actually due by the borrower.
What Will Happen If I Fight The Lawsuit?
National Collegiate Student Loan Trust generally counts on borrowers to do nothing when they sue for payment to get a default judgment against them and spend as little in legal fees as possible. In fact, approximately 90 percent of all collection lawsuits, including private student loan collection claims, end up with a default judgment.
If you hire an experienced attorney, several outcomes can occur that do not result in you having to pay the total amount being claimed. The following can occur:
- The plaintiff may dismiss the lawsuit for financial reasons. As discussed, most individuals don’t fight, so National Collegiate Student Loan Trust may find it too expensive to collect the debt if they are not going to get an easy default judgment.
- The court may dismiss the case because the defendant successfully argued a valid defense, such as:
- No Legal Right to Collect Debt
- Mistaken Identity
- Statute of Limitations
The plaintiff may offer to settle the lawsuit for less than what they claim you owe once they find out you have an attorney. Your attorney can also negotiate the settlement to ensure that it is an amount more satisfactory to you. For example, if National Collegiate Student Loan Trust claims that you owe them $50,000, and they offer to settle for $30,000, that may sound nice because it is $20,000 less than what they could get if you lost the lawsuit. Suppose your attorney goes to them and offers an immediate lump sum under that $30,000 settlement offer. In that case, they may be inclined to accept in order to ensure they receive the money immediately and not over a long period of time.
No Legal Right To Collect Debt
In order to legally collect a debt, National Collegiate Student Loans Trust must show that they own the debt to collect it legally. Borrowers have been challenging the National Collegiate Student Loans Trust in court. In some circumstances, National Collegiate Student loans failed to show that they bought the debt from authorized lenders, causing the court to dismiss the cases.
Statute Of Limitations
On April 7, 2022, the statute of limitations on debt in New York went from six years to three years. If a collections lawsuit does not begin within three years of the default date, the business may not bring a lawsuit to collect the debt. The default date is generally 30 days after you made your last payment or how the loan agreement defined it.
Hiring A New York Consumer Claims Attorney
If you are being sued by National Collegiate Student Loan Trust for a debt you may or may not owe, it is essential that you hire an experienced and knowledgeable attorney. Therefore, if you have received a collection notice or are being sued for a matter pertaining to National Collegiate Student Loan Trust, call Law Office of Simon Goldenberg at (888) 301-0584 or contact us online for a free, confidential consultation today.