How to Resolve Debt With National Collegiate Trust

American borrowers owe over $1.4 trillion in student loans. More than $100 billion of that comes from private student loans with few consumer protections.

National Collegiate Trust is one of the nation’s largest holders of private student loan debt. The company has a reputation for aggressive collection tactics.

You might feel powerless when facing a National Collegiate Trust collection action. You might feel scared to respond to correspondence about your student debt.

You are not powerless. You can fight back.

National Collegiate Trust has made serious mistakes in court. You can use these mistakes to your advantage. If you have questions about fighting back against National Collegiate Trust or any debt collector, our partner Solo can help you respond effectively.

What Is National Collegiate Trust?

National Collegiate Trust is an entity that holds private student loan debt. The company packages debt into securities that investors can buy.

Investors make money when students pay their loans back. National Collegiate Trust has huge incentive to collect payments. The company uses aggressive debt collection practices to maximize returns.

Why Is National Collegiate Involved in Your Student Loans?

National Collegiate Trust doesn’t provide student loans. The company buys them from other lenders after origination.

Here’s how the process works:

You first take out a private student loan through a loan originator. The originator might be JPMorgan Chase, Charter One, or Bank of America. The originator then sells the loan to a depositor.

National Collegiate Trust is essentially a depositor of private student loans. Depositors engage servicers who send billing statements to students. The servicer’s name appears on your bill, not the depositor’s name.

The depositor still owns your private student loan. If you fail to pay, the depositor hires debt collectors to demand payment.

National Collegiate Trust is one of the biggest depositors in the country. You’ll likely see their name if you receive collection demands or a lawsuit.

National Collegiate Trust Complaints and Legal Troubles

National Collegiate Trust found itself in deep legal trouble in 2017. Federal regulators from the Consumer Financial Protection Bureau (CFPB) investigated the company.

The CFPB found National Collegiate Trust was suing student loan borrowers for:

• Loans that National Collegiate could not prove it owned
• Loans where the statute of limitations had passed

National Collegiate Trust paid over $19 million in penalties. The company had to set aside $3.5 million for refunds to 2,000 borrowers.

How National Collegiate Trust’s Legal Problems Help You

The CFPB’s enforcement action reveals precisely how you can fight back. You now have a roadmap to resolve debt with National Collegiate Trust in court.

National Collegiate Must Prove Ownership

National Collegiate Trust must prove it owns your student loan. Proof must come through documentation showing the company bought your loan from the originator.

The CFPB demonstrated that National Collegiate Trust has difficulty keeping records in order. You can use this weakness to your advantage.

National Collegiate Must Prove Timely Collection

National Collegiate must prove it attempted to collect during the time allowed by law. Each state has a statute of limitations for debt collection.

If your state’s statute of limitations is five years, National Collegiate cannot legally collect if your loan is more than five years overdue.

How to Beat National Collegiate Trust in Court

You should stand up for yourself and force National Collegiate to prove its case. You need to respond to the lawsuit with confidence.

Follow these steps:

1. Respond Right Away by Filing an Answer

Upon receipt of a lawsuit, respond immediately by filing an Answer. Our partner Solo makes it easy to file an Answer to a collection lawsuit in any jurisdiction.

2. Demand Proof of Ownership

Demand that National Collegiate Trust prove it owns your particular student loan. Require documentation showing the chain of ownership from originator to current holder.

3. Assert the Statute of Limitations

Assert the statute of limitations as a defense when you file your Answer. The statute has likely run out on your student loan debt.

Why Fighting Back Is Worth the Effort

You have a good chance of getting your entire student loan debt dismissed. National Collegiate Trust often cannot produce documentation proving loan ownership.

The statute of limitations period may have passed on your debt. Either scenario can result in complete dismissal of your case.

Having the debt dismissed will dramatically improve your credit rating. You’ll also gain tremendous peace of mind knowing the debt is gone forever.

Get Help Responding to National Collegiate Trust

Our partner Solo makes it easy to respond to a debt collection lawsuit. The step-by-step platform asks all necessary questions to complete your Answer.

You can print the completed forms and mail them to the courts yourself. Or you can pay a small fee to have Solo file it for you and have an attorney review the document.

Your Rights Against National Collegiate Trust

National Collegiate Trust doesn’t hold all the cards. You have powerful defenses available even if they sue you in court.

Given National Collegiate Trust’s track record of poor record keeping, you may have excellent chances of winning. The company has already paid millions in penalties for improper collection practices.

You can use their history of violations to your advantage. Stand up for your rights and demand proper proof of their claims.