“I’ve Been Sued by National Collegiate Student Loan Trust!”
If you are in California, and have recently been served a summons & complaint for your student loans (most likely a student loan lawsuit from National Collegiate Student Loan Trust, National Collegiate Loan Trust, or another debt buyer), you may be scared. Here’s what to do:
- Don’t Panic. You’re not going to jail. No one is going to come take your children away from you (and, if anyone threatens to do so, call me asap – that’s illegal).
- Call a California National Collegiate Student Loan Trust Lawyer. You may have excellent defenses to your student loan lawsuit. Even though you already went to Google and learned that you can’t discharge student loans in bankruptcy, that DOES NOT MEAN you have no defenses. Call a Lawyer Who Understands Student Loans.
- Do NOT Ignore the Summons. I defend a lot of National Collegiate Loan Trust student loan lawsuits. I can do a better job helping you if your deadline to respond to the National Collegiate Loan Trust litigation has not already passed.
- Do NOT Listen to Your Friends. Unless they went to law school, and unless they understand student loan litigation, your friend’s stories and advice is, sadly, not very helpful, and may actually damage you if you listen to their advice. They’re your friends, NOT your lawyer.
- Did I Mention CALL A LAWYER? Do not delay. Do not delay. Call a student loan lawyer today. Many (like me), answer the phone late at night and on weekends. Once you’ve been served with the student loan lawsuit, your clock is ticking.
What Does a Student Loan Lawyer Do For You?
- I will help teach you about the different repayment options for your student loan that may be available to you, including pros and cons of each of these options.
- I will help you get out of default and stay out of default
- I will help you deal with the nasty, abusive, mean and harassing debt collection companies, even if that means suing the collector on your behalf.
- I will help you decide if you qualify for a discharge in bankruptcy, and I will help you get that discharge if appropriate.
- I represent student loan borrowers who have been sued by lenders or who have been sued by the Dept of Justice or by National Collegiate Loan Trust.
- I sue lenders, servicers, guarantors, and debt collectors who violate the law (and there are a LOT of them).
Student loan lawsuits are not hopeless. I will defend your National Collegiate Loan Trust lawsuit, for a reasonable fee, and will do my best to get the case dismissed, or to negotiate an outcome that is in your best interest. National Collegiate cases ARE NOT HOPELESS (I already said that, but I want to reiterate it).
What connection does this “trust” have to my student loan?
National Collegiate Student Loan Trust is neither a lender or guarantor or your student loan. National Collegiate Student Loan Trust is a trust, or series of trusts, that contain private student loans which have been packaged and resold on a secondary market as investment devices. This process is called “securitization,” and is no different than selling stock, or selling credit card debt.
How did National Collegiate Student Loan Trust get my loan?
With regard to National Collegiate Student Loan Trusts, the loans are “originated” by private banks such as JP Morgan Chase Bank, N.A. or Bank of America, N.A. Once the funds are dispersed, the loan is transferred to The National Collegiate Funding, LLC, which then transfers them into the trust; That trust being National Collegiate Student Loan Trust, which now acts as “servicer” who engages, contacts and/or sues the student to collect the loan.
Different variations of this trust include:
- National Collegiate Student Loan Trust 2007-1
- National Collegiate Student Loan Trust 2007-2
- National Collegiate Student Loan Trust 2006-3
Each trust holds a bucket of private student loans that could be valued over $1 billion. The trust then sells bonds to investors who receive distributions based on the amount of student-loan payments coming in. The pooling of the loans is supposed to balance the risk in the buckets.
What must this trust prove in court?
If and when you contact me, you’ve likely been sued by one of these National Collegiate Student Loan Trusts. The individual trust must be identified correctly in the caption. But these trusts often lack specific proof showing a transfer of your loan from the bank, to the Depositor, to the Trust. The paper trail appears to be problematic and burdensome for the lawyers who are hired to bring lawsuits on behalf of these trusts.
The basic elements that a plaintiff must prove to win a student loan case are 1) a signed promissory note; 2) that is in default; and 3) that is now in the hands of the entity suing you. Given the pooled transfers of your loan, these trusts may lack a clear presentation of these elements, which often increase our bargaining power.
No matter what, do not ignore any communication from National Collegiate Student Loan Trust. You could lose important rights — and bargaining power — once a judgment is entered against you. As with regard to any debt, you also want to make sure that your credit health is as best as it can be.