National Collegiate Student Loan Trust is suing consumers across the country for past due private student loans. National Collegiate Student Loan Trust is not a lender but is a Delaware Trust that holds private student loans guaranteed by TERI rather than by the federal government. Stated simply, it buys student loans from the original lenders and attempts to collect them for a profit. These private student loans were used by students to assist in financing the cost of attending undergraduate, law school, business school, medical school, dental school, and other graduate programs.
In order for the holder of a note to obtain a judgment against the consumer/borrower on a defaulted student loan, it must prove ownership of the loan. Given the fact that the consumer did not borrow the money from that National Collegiate Student Loan Trust, it must show how it acquired the loan. Proof of assignment of the student loan to National Collegiate Student Loan Trust is a requirement.
National Collegiate Student Loan Trust as well as other lenders and debt-buyers count on consumers doing nothing so it can obtain a default judgment against the borrower. From a statistical standpoint, more than 90% of all collection lawsuits – including those for private student loans – end up with a default judgment. Tragically, most borrowers who receive lawsuit papers simply do nothing to defend themselves.
It is important for consumers to defend themselves against lawsuits brought by National Collegiate Student Loan Trust and to demand that they prove their case.