Many of my clients are co-signers on private student loans owed to National Collegiate Student Loan Trust.  Most of them are parents who co-signed on their child’s private student loan.  The loan that they co-signed on was NOT originally with National Collegiate Student Loan Trust (NCT), so they are very confused when they receive notice that they are being sued by NCT.  So what can you do if you co-signed for a private student loan owed to National Collegiate Student Loan Trust?

 

Who is National Collegiate Student Loan Trust?
“Who is National Collegiate Student Loan Trust?” is often the first question I receive. When you take out a private student loan, the bank that you take the loan out from (Bank One, Discover, Chase Bank) funds the loan. Within a short period of time, your loan is then put into a trust pool. Those trust pools are sold to National Collegiate Student Loan Trust prior to payment becoming due. These loans are serviced during repayment by American Education Services (AES) unless your payments go into default, at which time they are transferred to Transworld Systems, Inc. (TSI) for servicing and collections. At this point, National Collegiate Student Loan Trust is basically a debt collector. And they will come after you for payment on the student loan debt with their vast resource of attorneys.

 

Can National Collegiate Student Loan Trust Sue me if I am the Co-Signer of the Loan?

Yes, National Collegiate Student Loan Trust can, and most likely will sue you if you are the co-signer of a private student loan that they now own.

 

Will I be Responsible for the Entire Debt Owed if I am the Co-Signer on a Loan Owned by National Collegiate Student Loan Trust?

Yes, both the primary borrower and the co-signer are equally responsible for the entire debt. This is one of the many pitfalls of co-signing for someone else.

 

What Do I Do if I am Sued by National Collegiate Student Loan Trust?

You have options if you are sued by National Collegiate Student Loan Trust.  The first step is finding legal representation that has ample experience fighting back against National Collegiate Student Loan Trust.  It can be a complicated process, so you need someone who knows the ins and out of National Collegiate Student Loan Trust to get you through this.  A capable debt relief attorney will:

  • Make sure your lawsuit is valid. If National Collegiate Student Loan Trust cannot prove that you are the co-signer on the loan and/or prove that the amount owed is precisely accurate, then your lawsuit could be dismissed. 
  • Negotiate a Debt Settlement. A debt settlement is a negotiation reached between the borrower and National Collegiate Student Loan Trust. In that negotiation an agreement is reached wherein the borrower will pay back less than the original debt owed.  Oftentimes, significantly less.  Depending on the negotiation, the student loan debt is usually paid back over an extended period of time with a payment plan. If you are a co-signer, it may be possible to negotiate to relieve yourself of further liability in exchange for an agreement that you pay a smaller percentage of the amount claimed due.

If you, like thousands of others, are a co-signer on a private student loan owed to National Collegiate Student Loan Trust and have been sued or are receiving collection notices from them, then give me a call at 858-217-5051.  I offer a free debt consultation to go over your options.

 

Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego, CA. For more information, please contact Daniel Gamez at 858-217-5051, daniel@gamezlawfirm.com or use our online contact form. Stay updated with the latest debt relief tips by following on Facebook and Twitter!