5 Steps to Defend Against a National Collegiate Student Loan Trust Lawsuit

National Collegiate Student Loan Trust is one of the largest private student loan creditors in the country. National Collegiate is not an original creditor which means that the student loan debt that they sue consumers on is assigned to them. It is important to use an aggressive defense to a lawsuit received from National Collegiate to obtain the best results.

When a summons and complaint is received from National Collegiate follow these steps:

1. Submit an answer with affirmative defenses within 20-30 days of service depending on the type of service. Defenses can include Standing; Privity and Hearsay among others. An Answer must be submitted within 20 days if service is made upon the defendant personally and within 30 days if service is made by other means.

2. Request all the necessary documents through the Discovery process. This includes a request for the initial loan agreement, statements and more importantly, a chain-of-title showing the assignment of the debt from the original party to National Collegiate. A lack of the assignment paperwork or other documents can lead to serious problems for the creditor.

3. Request depositions of the witnesses who are supposed to testify on behalf of National Collegiate. Remember that it is the plaintiff’s burden to prove that the defendant owes the debt. They must properly submit evidence to meet that burden. A deposition can frequently expose “straw” witnesses that do not have personal first-hand knowledge of the assignment of the debt to National Collegiate and instead shows that they are just there to rubber-stamp affidavits of personal knowledge. This sort of exposure can lead to serious Hearsay issues that National Collegiate may not be able to overcome.

4. File a Motion for Summary Judgment asking the judge to dismiss the matter without moving further towards trial based on the lack of evidence presented by the plaintiff. If the Discovery process reveals that National Collegiate has problems either with a lack of documented proof or shows that their witnesses are not reliable and do not have personal knowledge of the transactions portrayed, then a Motion for Summary Judgment is the perfect tool to request that the case be dismissed at that point of litigation.

5. Use the leverage from the first four steps to negotiate an out-of-court settlement for a significantly reduced balance. National Collegiate frequently prefers to avoid litigation and would rather settle these student loan matters for 40% - 75% off of the entire balance. This can be a useful alternative as litigation can be lengthy, expensive and complicated for both parties. A settlement eliminates the risk of making mistakes or even losing the case while providing a significantly reduced balance and an interest free re-payment plan in most cases.

National Collegiate Student Loan Trust can be defended against and even defeated if these steps are followed. A consumer debt attorney should always be consulted when a lawsuit like this is received.