National Collegiate Student Loan Trust is one of the largest private student loan lenders in the country, probably second in line to Sallie Mae/Navient. Although private student loan lawsuits paused during the covid pandemic, we have seen them resume and increase ever since New York Courts have allowed lawsuits to resume in late May. These private student loan lawsuits are extremely concerning because unlike Federal loans which have been placed on deferment with 0% interest until the end of this year, private student loans have free reign to enforce against struggling consumers during this pandemic.
NCSLT lawsuits frequently lead to default judgments against consumers. These judgments are particularly dangerous because they are usually for a much higher balance than the ordinary credit card debt and frequently exceed $100,000. These default judgments can lead to bank levies, wage garnishment and liens placed on real property. It is essential to defend against these lawsuits to prevent defaults from occurring or to move to vacate default judgments as quickly as they are discovered. Debt collection law firms such as Forster & Garbus and Rubin & Rothman are the most common firms associates with NCSLT lawsuits. Once leverage such as an answer or a motion to vacate judgment is asserted, negotiation to settle these private student loans commonly result in settlements that reduce the balance anywhere between 40%-75% off of the balance.