Student Loans are one of the biggest financial burdens facing young people today.
And it isn’t just young people. In fact, some of the worst student loan practices involve middle-aged and older people who are trying to get education to re-train for a new career. If you’ve fallen behind on your student loans, you may eventually face a lawsuit by an entity called “National Collegiate Student Loan Trust.” Who are they?
National Collegiate Student Loan Trust, or “NCLST” is, as the name implies, a trust that holds massive pools of student loans. Think of it as a company that buys lots and lots of student loan accounts and then tries to collect them. It’s a lot like the debt buyers that you may see if you have some old unpaid credit card bills.
Some of these bills can be really big – tens of thousands of dollars – so getting a lawsuit from NCLST can be very alarming. But don’t lose hope. This can actually be a good thing.
Why? Well, one of the biggest problems with student loans is that you can’t discharge them in bankruptcy, and because of this, they are notoriously difficult to settle for less than the amount owed.
But when they sue you, they have to prove their case. They have the burden of proof. And the nature of their business – aggregating thousands of accounts and transferring them from lender to trust, and possibly from trust to trust several times – makes it possible for your lawyer – if he’s a good one – to pick apart their case for mistakes, missing evidence, or defenses that you may not know about. This can make it possible for you to negotiate a favorable settlement, or even potentially dismiss the case outright.
So if you’ve been sued by National Collegiate Student Loan Trust in Alabama, feel free to call me or another local debt defense attorney to evaluate your options for dealing with these debts.