Sued by National Collegiate Trust
I have recently had several clients who have been sued by National Collegiate Trust (Sometimes National Collegiate Student Loan Trust).
If you are sued by NCT, don’t panic. There are good solid defenses available for you.
There are a number of defenses that I raise when defending these NCT student loan lawsuit cases. Many of these National Collegiate Trust loans had a guarantee agreement in them (and they were never originally made by NCT). A guarantee agreement is similar to an insurance policy: When you default on the student loan, the guarantee company pays the claim. If a guarantee was paid on your case, then National Collegiate Trust would not even be the proper party to sue you, because they have been paid already. Further, some of these loans which National Collegiate Trust is suing on, had a rehabilitation agreement in the original contract. A rehabilitation is a plan by the borrower to get out of default and onto a better repayment program. We have found that NCT and its servicer VIRTUALLY NEVER made this offer of rehabilitation to borrowers. This is a breach of contract law and its also an ethical violation as well.
In the event that National Collegiate is able to cure the insufficiency objections, then I then move on to defending the claim on its legal merits, i.e. whether you actually had the student loan, whether you actually defaulted on it, when the alleged default occurred, whether the amount is correct, et cetera.
Many of these claims are time barred, that is, they are filed beyond the applicable statute of limitations.
• 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
• National Collegiate Funding, LLC
• First Marblehead Data Services
• NCO Financial
• The Education Resource Institute, Inc. (TERI)
• Bank One, N.A.
• J.P. Morgan Chase, N.A.