(November 8, 2013)
Those of you who have previously visited my website may know that part of my practice is devoted to debt defense, including the defense of student loans. The student loans I am referring to are from the National Collegiate Student Loan Trust. There are numerous series of the trust; one example is the National Collegiate Student Loan Trust 2007-I, or the loan can be a part of the Trust’s loans in any given year.
More to the point, the National Student Loan Trust is not affiliated with the United States Government. These loans can be discharged in bankruptcy, unlike federal government loans. A lawsuit over a private student loan is no different than a bank loano r credit card debt. The fact that the debt is a student loan does not create additional liability.
The National Collegiate Loan Trust is a Delaware Trust that holds private student loans that are not guaranteed by the federal government.
The loans in the trust are generated from several different banks under different programs with the assistance of the First Marblehead Corporation, which is an education finance company. Since you did not borrow money from the National Collegiate Loan Trust, they must have gotten the money from another bank. In order to successfully sue on the note, they must prove that they have the promissory note and are legally able to prove ownership in assignment of the note.
When someone files a lawsuit against you, all they are doing is making a claim that you owe money. It is for you to decide whether to do nothing, or to make that someone prove their case. If you do nothing, a judgment will be entered against you which can result in garnishment of wages and other aggressive debt collection options, such as bank account freezes, or liens on your property. Of course, you have the option of seeking legal advice before you decide what to do.